Has Federal Signal (FSS) Outpaced Other Conglomerates Stocks This Year?

The Conglomerates group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Federal Signal (FSS) 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Conglomerates sector should help us answer this question.

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Federal Signal is a member of our Conglomerates group, which includes 16 different companies and currently sits at #5 in 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 is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Federal Signal is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for FSS' full-year earnings has moved 1.7% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, FSS has gained about 18.4% so far this year. In comparison, Conglomerates companies have returned an average of 6.2%. This shows that Federal Signal is outperforming its peers so far this year.

Mitsubishi Corp. (MSBHF) is another Conglomerates stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 23.4%.

For Mitsubishi Corp., the consensus EPS estimate for the current year has increased 7.1% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Federal Signal belongs to the Diversified Operations industry, a group that includes 16 individual companies and currently sits at #83 in the Zacks Industry Rank. On average, this group has gained an average of 6.2% so far this year, meaning that FSS is performing better in terms of year-to-date returns. Mitsubishi Corp. is also part of the same industry.

Investors with an interest in Conglomerates stocks should continue to track Federal Signal and Mitsubishi Corp.. These stocks will be looking to continue their solid performance.

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Federal Signal Corporation (FSS) : Free Stock Analysis Report

Mitsubishi Corp. (MSBHF) : Free Stock Analysis Report

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

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