For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Aegon NV (AEG) 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.
Aegon NV is one of 866 individual stocks in the Finance sector. Collectively, these companies sit at #1 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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. Aegon NV is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for AEG's full-year earnings has moved 1.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, AEG has returned 28.7% so far this year. In comparison, Finance companies have returned an average of 11.9%. This means that Aegon NV is performing better than its sector in terms of year-to-date returns.
One other Finance stock that has outperformed the sector so far this year is Interactive Brokers Group, Inc. (IBKR). The stock is up 38.4% year-to-date.
Over the past three months, Interactive Brokers Group, Inc.'s consensus EPS estimate for the current year has increased 11.1%. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Aegon NV is a member of the Insurance - Multi line industry, which includes 43 individual companies and currently sits at #80 in the Zacks Industry Rank. Stocks in this group have gained about 5.9% so far this year, so AEG is performing better this group in terms of year-to-date returns.
Interactive Brokers Group, Inc., however, belongs to the Financial - Investment Bank industry. Currently, this 21-stock industry is ranked #16. The industry has moved +22.8% so far this year.
Going forward, investors interested in Finance stocks should continue to pay close attention to Aegon NV and Interactive Brokers Group, Inc. as they could maintain their solid performance.
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Aegon NV (AEG): Free Stock Analysis Report Interactive Brokers Group, Inc. (IBKR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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