Are Industrial Products Stocks Lagging Kaiser Aluminum (KALU) This Year?

The Industrial Products group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Kaiser Aluminum (KALU) 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 Industrial Products peers, we might be able to answer that question.

Kaiser Aluminum is a member of the Industrial Products sector. This group includes 187 individual stocks and currently holds a Zacks Sector Rank of #5. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The 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 earnings estimate revisions and favors companies with improving earnings outlooks. Kaiser Aluminum is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for KALU's full-year earnings has moved 22.3% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, KALU has gained about 39.1% so far this year. In comparison, Industrial Products companies have returned an average of 14.5%. This shows that Kaiser Aluminum is outperforming its peers so far this year.

UniFirst (UNF) is another Industrial Products stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 52.2%.

Over the past three months, UniFirst's consensus EPS estimate for the current year has increased 3.9%. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Kaiser Aluminum belongs to the Metal Products - Procurement and Fabrication industry, a group that includes 6 individual companies and currently sits at #90 in the Zacks Industry Rank. On average, stocks in this group have gained 6.6% this year, meaning that KALU is performing better in terms of year-to-date returns.

UniFirst, however, belongs to the Uniform and Related industry. Currently, this 2-stock industry is ranked #35. The industry has moved +65.6% so far this year.

Investors interested in the Industrial Products sector may want to keep a close eye on Kaiser Aluminum and UniFirst as they attempt to continue their solid performance.

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

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