For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Galaxy Digital Inc. (GLXY) 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.
Galaxy Digital Inc. is one of 858 companies in the Finance group. The Finance group currently sits at #6 within 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 is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Galaxy Digital Inc. is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for GLXY's full-year earnings has moved 24% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, GLXY has gained about 43.1% so far this year. Meanwhile, stocks in the Finance group have gained about 18.4% on average. This means that Galaxy Digital Inc. is performing better than its sector in terms of year-to-date returns.
Another Finance stock, which has outperformed the sector so far this year, is UWM Holdings Corporation (UWMC). The stock has returned 32.4% year-to-date.
The consensus estimate for UWM Holdings Corporation's current year EPS has increased 6.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Galaxy Digital Inc. belongs to the Financial - Miscellaneous Services industry, a group that includes 103 individual stocks and currently sits at #170 in the Zacks Industry Rank. Stocks in this group have lost about 8.5% so far this year, so GLXY is performing better this group in terms of year-to-date returns.
In contrast, UWM Holdings Corporation falls under the Financial - Mortgage & Related Services industry. Currently, this industry has 13 stocks and is ranked #89. Since the beginning of the year, the industry has moved +41.7%.
Galaxy Digital Inc. and UWM Holdings Corporation could continue their solid performance, so investors interested in Finance stocks should continue to pay close attention to these stocks.
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Galaxy Digital Inc. (GLXY): Free Stock Analysis Report UWM Holdings Corporation (UWMC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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