Is Hitachi (HTHIY) Outperforming Other Conglomerates Stocks This Year?

Zacks

Investors focused on the Conglomerates space have likely heard of Hitachi (HTHIY), but is the stock performing well in comparison to the rest of its sector peers? By taking a look at the stock’s year-to-date performance in comparison to its Conglomerates peers, we might be able to answer that question.

Hitachi is one of 22 individual stocks in the Conglomerates sector. Collectively, these companies sit at #10 in the Zacks Sector Rank. 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 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. HTHIY is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for HTHIY’s full-year earnings has moved 5.61% higher within the past quarter. This means that analyst sentiment is stronger and the stock’s earnings outlook is improving.

Our latest available data shows that HTHIY has returned about 18.83% since the start of the calendar year. At the same time, Conglomerates stocks have gained an average of 12.14%. As we can see, Hitachi is performing better than its sector in the calendar year.

To break things down more, HTHIY belongs to the Diversified Operations industry, a group that includes 22 individual companies and currently sits at #110 in the Zacks Industry Rank. Stocks in this group have gained about 12.14% so far this year, so HTHIY is performing better this group in terms of year-to-date returns.

Going forward, investors interested in Conglomerates stocks should continue to pay close attention to HTHIY as it looks to continue its solid performance.

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