The Finance group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. The Bank of New York Mellon Corporation (BK) 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? Let's take a closer look at the stock's year-to-date performance to find out.
The Bank of New York Mellon Corporation is a member of the Finance sector. This group includes 869 individual stocks and currently holds a Zacks Sector Rank of #1. 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. The Bank of New York Mellon Corporation is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for BK's full-year earnings has moved 5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that BK has returned about 37.5% since the start of the calendar year. Meanwhile, the Finance sector has returned an average of 12.9% on a year-to-date basis. This means that The Bank of New York Mellon Corporation is outperforming the sector as a whole this year.
Another stock in the Finance sector, Royal Bank (RY), has outperformed the sector so far this year. The stock's year-to-date return is 20.6%.
Over the past three months, Royal Bank's consensus EPS estimate for the current year has increased 4.4%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, The Bank of New York Mellon Corporation belongs to the Banks - Major Regional industry, a group that includes 10 individual stocks and currently sits at #29 in the Zacks Industry Rank. On average, stocks in this group have gained 12.1% this year, meaning that BK is performing better in terms of year-to-date returns.
In contrast, Royal Bank falls under the Banks - Foreign industry. Currently, this industry has 67 stocks and is ranked #78. Since the beginning of the year, the industry has moved +34.7%.
Going forward, investors interested in Finance stocks should continue to pay close attention to The Bank of New York Mellon Corporation and Royal Bank as they could maintain their solid performance.
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The Bank of New York Mellon Corporation (BK): Free Stock Analysis Report Royal Bank Of Canada (RY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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