Are Auto-Tires-Trucks Stocks Lagging BRP (DOO) This Year?

The Auto-Tires-Trucks group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is BRP Inc. (DOO) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Auto-Tires-Trucks peers, we might be able to answer that question.

BRP Inc. is a member of the Auto-Tires-Trucks sector. This group includes 102 individual stocks and currently holds a Zacks Sector Rank of #4. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. BRP Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for DOO's full-year earnings has moved 6% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, DOO has gained about 1.5% so far this year. Meanwhile, the Auto-Tires-Trucks sector has returned an average of -12.9% on a year-to-date basis. As we can see, BRP Inc. is performing better than its sector in the calendar year.

Michelin (MGDDY) is another Auto-Tires-Trucks stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 2.7%.

Over the past three months, Michelin's consensus EPS estimate for the current year has increased 4.9%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, BRP Inc. belongs to the Automotive - Original Equipment industry, which includes 53 individual stocks and currently sits at #81 in the Zacks Industry Rank. On average, this group has lost an average of 6.3% so far this year, meaning that DOO is performing better in terms of year-to-date returns.

Michelin, however, belongs to the Rubber - Tires industry. Currently, this 2-stock industry is ranked #99. The industry has moved -24.3% so far this year.

Going forward, investors interested in Auto-Tires-Trucks stocks should continue to pay close attention to BRP Inc. and Michelin as they could maintain their solid performance.

5 Stocks Set to Double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

BRP Inc. (DOO): Free Stock Analysis Report

Michelin (MGDDY): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research