The Industrial Products group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is CECO Environmental (CECE) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Industrial Products peers, we might be able to answer that question.
CECO Environmental is a member of our Industrial Products group, which includes 228 different companies and currently sits at #10 in the Zacks Sector Rank. 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. CECO Environmental is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for CECE's full-year earnings has moved 16.7% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that CECE has returned about 47% since the start of the calendar year. Meanwhile, stocks in the Industrial Products group have lost about 26.7% on average. This shows that CECO Environmental is outperforming its peers so far this year.
One other Industrial Products stock that has outperformed the sector so far this year is Energy Recovery (ERII). The stock is up 10.7% year-to-date.
In Energy Recovery's case, the consensus EPS estimate for the current year increased 11.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, CECO Environmental belongs to the Pollution Control industry, a group that includes 10 individual stocks and currently sits at #17 in the Zacks Industry Rank. This group has lost an average of 21.2% so far this year, so CECE is performing better in this area. Energy Recovery is also part of the same industry.
CECO Environmental and Energy Recovery could continue their solid performance, so investors interested in Industrial Products stocks should continue to pay close attention to these stocks.
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