For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Capital One (COF) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Finance sector should help us answer this question.
Capital One is one of 866 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. Capital One is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for COF's full-year earnings has moved 7.3% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, COF has gained about 24.2% so far this year. Meanwhile, stocks in the Finance group have gained about 12.4% on average. As we can see, Capital One is performing better than its sector in the calendar year.
Another Finance stock, which has outperformed the sector so far this year, is New York Mortgage Trust (ADAM). The stock has returned 22.3% year-to-date.
In New York Mortgage Trust's case, the consensus EPS estimate for the current year increased 4.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Capital One belongs to the Financial - Consumer Loans industry, a group that includes 15 individual stocks and currently sits at #87 in the Zacks Industry Rank. On average, this group has gained an average of 51.3% so far this year, meaning that COF is slightly underperforming its industry in terms of year-to-date returns.
On the other hand, New York Mortgage Trust belongs to the REIT and Equity Trust industry. This 33-stock industry is currently ranked #195. The industry has moved +9% year to date.
Investors interested in the Finance sector may want to keep a close eye on Capital One and New York Mortgage Trust as they attempt to continue their solid performance.
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Capital One Financial Corporation (COF): Free Stock Analysis Report New York Mortgage Trust, Inc. (ADAM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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