Are Finance Stocks Lagging The Bank of New York Mellon (BK) 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. Is The Bank of New York Mellon Corporation (BK) one of those stocks right now? 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.

The Bank of New York Mellon Corporation is a member of the Finance sector. This group includes 867 individual stocks and currently holds a Zacks Sector Rank of #3. 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 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. The Bank of New York Mellon Corporation is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for BK's full-year earnings has moved 3.4% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, BK has moved about 39.3% on a year-to-date basis. At the same time, Finance stocks have gained an average of 12.8%. This means that The Bank of New York Mellon Corporation is outperforming the sector as a whole this year.

Another Finance stock, which has outperformed the sector so far this year, is Nu Holdings Ltd. (NU). The stock has returned 47.1% year-to-date.

For Nu Holdings Ltd., the consensus EPS estimate for the current year has increased 1.8% over the past three months. 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 #52 in the Zacks Industry Rank. Stocks in this group have gained about 8.1% so far this year, so BK is performing better this group in terms of year-to-date returns.

In contrast, Nu Holdings Ltd. falls under the Banks - Foreign industry. Currently, this industry has 67 stocks and is ranked #89. Since the beginning of the year, the industry has moved +36.5%.

Investors interested in the Finance sector may want to keep a close eye on The Bank of New York Mellon Corporation and Nu Holdings Ltd. as they attempt to continue their solid performance.

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

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