For those looking to find solid transport tickets, it is prudent to seek out group companies that outperform their peers. Safe Bulkers (SB) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably with those of the industry as a whole? Let’s take a closer look at the stock’s performance since the start of the year to find out.
Safe Bulkers is a member of our Transport group, which comprises 138 different companies and currently ranks third in the Zacks sector ranking. Zacks’ industry ranking considers 16 different industry groups. The average Zacks rank of individual stocks within groups is measured and sectors are ranked from best to worst.
Zacks Rank is an effective stock picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the overall market over the next one to three months. Safe Bulkers currently sports a Zacks rank of # 2 (Buy).
Over the past three months, Zacks’ consensus estimate for SB’s annual earnings has risen 6.7%. This shows that analyst sentiment has improved and the company’s earnings outlook is stronger.
According to our latest data, SB has moved around 177.7% year-to-date. In comparison, transport companies achieved an average return of 5.8%. This means Safe Bulkers has outperformed its industry in terms of returns since the start of the year.
Another transport title is Star Bulk Carriers (SBLK), which has outperformed the industry so far this year. The stock has returned 124.9% year-to-date.
In the case of Star Bulk Carriers, the consensus estimate of EPS for the current year has risen 8.5% in the past three months. The stock currently has a Zacks Rank # 2 (Buy).
To break it down further, Safe Bulkers is a member of the Freight Forwarding Industry, which comprises 44 individual companies and currently ranks 92nd in the Zacks Industry Rankings. On average, stocks in this group have gained 52.4% this year, which means SB is performing better in terms of returns since the start of the year. Star Bulk Carriers are also part of the same industry.
Safe Bulkers and Star Bulk Carriers could continue their strong performance, so investors interested in transport stocks should continue to pay close attention to these stocks.
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