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Is Danaos (DAC) Stock Outpacing Its Transportation Peers This Year?

Zacks Equity Research
·2-min read

Investors interested in Transportation stocks should always be looking to find the best-performing companies in the group. Danaos (DAC) 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 Transportation peers, we might be able to answer that question.

Danaos is a member of our Transportation group, which includes 138 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 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. Danaos is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for DAC's full-year earnings has moved 19.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

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Based on the latest available data, DAC has gained about 227.1% so far this year. Meanwhile, the Transportation sector has returned an average of 10.6% on a year-to-date basis. This means that Danaos is outperforming the sector as a whole this year.

One other Transportation stock that has outperformed the sector so far this year is Eagle Bulk Shipping (EGLE). The stock is up 125.7% year-to-date.

For Eagle Bulk Shipping, the consensus EPS estimate for the current year has increased 28.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Danaos belongs to the Transportation - Shipping industry, a group that includes 44 individual stocks and currently sits at #92 in the Zacks Industry Rank. On average, this group has gained an average of 58.1% so far this year, meaning that DAC is performing better in terms of year-to-date returns. Eagle Bulk Shipping is also part of the same industry.

Investors interested in the Transportation sector may want to keep a close eye on Danaos and Eagle Bulk Shipping as they attempt to continue their solid performance.


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Danaos Corporation (DAC) : Free Stock Analysis Report
 
Eagle Bulk Shipping Inc. (EGLE) : Free Stock Analysis Report
 
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