For those looking to find strong Conglomerates stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Grupo Mexico, S.A.B. de C.V. (GMBXF) been one of those stocks this year? 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.
Grupo Mexico, S.A.B. de C.V. is one of 27 companies in the Conglomerates group. The Conglomerates group currently sits at #1 within 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. Grupo Mexico, S.A.B. de C.V. is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for GMBXF's full-year earnings has moved 7.1% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, GMBXF has gained about 32.5% so far this year. At the same time, Conglomerates stocks have lost an average of 16.3%. This shows that Grupo Mexico, S.A.B. de C.V. is outperforming its peers so far this year.
Another stock in the Conglomerates sector, Marubeni Corp. (MARUY), has outperformed the sector so far this year. The stock's year-to-date return is 15.9%.
In Marubeni Corp.'s case, the consensus EPS estimate for the current year increased 2.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Grupo Mexico, S.A.B. de C.V. is a member of the Diversified Operations industry, which includes 27 individual companies and currently sits at #39 in the Zacks Industry Rank. On average, this group has lost an average of 16.3% so far this year, meaning that GMBXF is performing better in terms of year-to-date returns. Marubeni Corp. is also part of the same industry.
Investors with an interest in Conglomerates stocks should continue to track Grupo Mexico, S.A.B. de C.V. and Marubeni Corp.. These stocks will be looking to continue their solid performance.
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Grupo Mexico, S.A.B. de C.V. (GMBXF) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
