Is Elbit Systems (ESLT) Outperforming Other Aerospace Stocks This Year?

For those looking to find strong Aerospace stocks, it is prudent to search for companies in the group that are outperforming their peers. Elbit Systems (ESLT) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Aerospace peers, we might be able to answer that question.

Elbit Systems is a member of our Aerospace group, which includes 68 different companies and currently sits at #5 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Elbit Systems is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for ESLT's full-year earnings has moved 2.8% 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, ESLT has gained about 59.4% so far this year. At the same time, Aerospace stocks have gained an average of 2.9%. As we can see, Elbit Systems is performing better than its sector in the calendar year.

Another Aerospace stock, which has outperformed the sector so far this year, is Outdoor Holding Company (POWW). The stock has returned 12.3% year-to-date.

The consensus estimate for Outdoor Holding Company's current year EPS has increased 36.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Elbit Systems belongs to the Aerospace - Defense Equipment industry, which includes 37 individual stocks and currently sits at #81 in the Zacks Industry Rank. Stocks in this group have gained about 3.7% so far this year, so ESLT is performing better this group in terms of year-to-date returns. Outdoor Holding Company is also part of the same industry.

Going forward, investors interested in Aerospace stocks should continue to pay close attention to Elbit Systems and Outdoor Holding Company as they could maintain their solid performance.

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

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