The Finance group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has The Charles Schwab Corporation (SCHW) 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.
The Charles Schwab Corporation is a member of our Finance group, which includes 863 different companies and currently sits at #1 in the Zacks Sector Rank. 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 Charles Schwab Corporation is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for SCHW's full-year earnings has moved 3.7% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, SCHW has moved about 25.2% on a year-to-date basis. At the same time, Finance stocks have gained an average of 14.2%. This shows that The Charles Schwab Corporation is outperforming its peers so far this year.
Popular (BPOP) is another Finance stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 23.7%.
In Popular's case, the consensus EPS estimate for the current year increased 3.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, The Charles Schwab Corporation is a member of the Financial - Investment Bank industry, which includes 21 individual companies and currently sits at #26 in the Zacks Industry Rank. This group has gained an average of 29.9% so far this year, so SCHW is slightly underperforming its industry in this area.
In contrast, Popular falls under the Banks - Southeast industry. Currently, this industry has 56 stocks and is ranked #33. Since the beginning of the year, the industry has moved -0.4%.
Going forward, investors interested in Finance stocks should continue to pay close attention to The Charles Schwab Corporation and Popular as they could maintain their solid performance.
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The Charles Schwab Corporation (SCHW): Free Stock Analysis Report Popular, Inc. (BPOP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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