Are Finance Stocks Lagging First BanCorp. (FBP) This Year?

For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. First Bancorp (FBP) 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 Finance peers, we might be able to answer that question.

First Bancorp is one of 869 individual stocks in the Finance sector. Collectively, these companies sit at #2 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. First Bancorp is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for FBP's full-year earnings has moved 5.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, FBP has moved about 15.6% on a year-to-date basis. Meanwhile, stocks in the Finance group have gained about 7.5% on average. This means that First Bancorp is outperforming the sector as a whole this year.

One other Finance stock that has outperformed the sector so far this year is Banco Comercial Portugues S.A. Unsponsored ADR (BPCGY). The stock is up 45.3% year-to-date.

Over the past three months, Banco Comercial Portugues S.A. Unsponsored ADR's consensus EPS estimate for the current year has increased 14%. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, First Bancorp belongs to the Banks - Southeast industry, a group that includes 54 individual companies and currently sits at #61 in the Zacks Industry Rank. This group has gained an average of 2.3% so far this year, so FBP is performing better in this area.

In contrast, Banco Comercial Portugues S.A. Unsponsored ADR falls under the Banks - Foreign industry. Currently, this industry has 67 stocks and is ranked #14. Since the beginning of the year, the industry has moved +25.1%.

Going forward, investors interested in Finance stocks should continue to pay close attention to First Bancorp and Banco Comercial Portugues S.A. Unsponsored ADR as they could maintain their solid performance.

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

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