Are the industrial product stocks lagging behind Atlas Copco (ATLKY) this year?

The Industrial Products sector has numerous standout stocks, but we must always look for companies that outperform their competitors. Atlas Copco AB (ATLKY) is a stock that definitely catches the eye, but how does its recent performance compare to the rest of the sector? A quick look at its performance this year will help us answer this question.

Atlas Copco belongs to the Industrial Products sector, which includes 189 individual stocks and currently holds a Sector Rank of #2. The system considers 16 different sector groups, measuring the average Zacks Rank of individual stocks within each group.

The Zacks Rank emphasizes earnings estimates and their revisions to find stocks with improving profit prospects. Atlas Copco currently holds a Zacks Rank of #2 (Buy).

During the last 90 days, the Zacks consensus estimate for ATLKY's annual earnings has increased by 0.9%. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, ATLKY has risen approximately 12.7% since the beginning of the year. In comparison, Industrial Products companies have had an average performance of 7.1%. This means that Atlas Copco is outperforming its sector in terms of annual performance.

Another action in the sector, Fastenal (FAST), has also outperformed the sector this year with a return of 32.2%. Over the past three months, the consensus EPS estimate for Fastenal for the current year has increased by 2.1%. The stock currently has a Zacks Rank #2 (Buy).

To analyze in more detail, Atlas Copco belongs to the General Industrial Manufacturing industry, a group that includes 41 companies and currently ranks #59 in the Zacks Industry Rankings. On average, this group has gained 5.9% this year, which means that ATLKY is performing better in terms of annual returns.

On the other hand, Fastenal belongs to the Industrial Services industry. This industry of 18 stocks currently ranks #42 and has risen by 4.8% year to date.

I find it fascinating how Atlas Copco has managed to outperform the market in such a challenging economic context. Personally, I believe that their focus on technological innovation and operational efficiency has been key. However, I wonder if they will be able to maintain this pace in the face of increasing Asian competition that offers similar products at lower prices. Investors should closely monitor both stocks, as they seem well-positioned to continue their strong performance, although there is always the risk of a correction if the global economy deteriorates more than expected.