Is Unifi (UFI) outperforming other industrials stocks this year?
For those looking to find strong industrials stocks, it is prudent to look for group companies that are outperforming their peers. Is Unifi (UFI) one of these actions now? Let’s take a closer look at the stock’s performance since the start of the year to find out.
Unifi is a member of our Industrial Products group, which comprises 223 different companies and currently ranks 14th in the Zacks Sector ranking. The Zacks Industry Rankings include 16 different groups and is ranked from best to worst in terms of the average Zacks rankings of individual companies in each of those industries.
Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes revisions to earnings estimates and favors companies with improving earnings prospects. Unifi currently sports a Zacks rank of # 2 (Buy).
In the last quarter, Zacks’ consensus estimate for UFI’s annual profit rose 3.7%. This indicates that analyst sentiment is improving and the stock’s earnings outlook is more positive.
Our latest available data shows that UFI has returned around 15.6% since the start of the calendar year. In comparison, the Industrial Products companies obtained an average return of 13.3%. As can be seen, Unifi performs better than its industry during the calendar year.
Another industrial products sector title, Encore Wire (WIRE), has outperformed the sector so far this year. The share return since the start of the year is 136.6%.
Over the past three months, Encore Wire’s consensus estimate of EPS for the current year has increased by 36.7%. The stock currently has a Zacks Rank # 1 (strong buy).
To break it down further, Unifi belongs to the Textile – Products industry, a group that includes 3 individual companies and currently sits at No. 29 in the Zacks industry rankings. On average, stocks in this group have gained 13.1% this year, which means UFI has performed better in terms of return since the start of the year.
Encore Wire, however, belongs to the wire and cable products industry. Currently, this 2-stock industry is ranked # 2. The industry has grown by + 112.1% so far this year.
Investors interested in the industrials sector may want to keep a close watch on Unifi and Encore Wire as they look to continue their strong performance.
Technological IPOs with huge profit potential: Last year, major IPOs jumped 299% in the first two months. With record amounts of cash flowing in IPOs and a record stock market, this year could be even more lucrative.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.