For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Alexander's (ALX) 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? 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.
Alexander's is a member of the Finance sector. This group includes 855 individual stocks and currently holds a Zacks Sector Rank of #3. 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. Alexander's is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for ALX's full-year earnings has moved 6.9% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, ALX has returned 17.3% so far this year. At the same time, Finance stocks have gained an average of 0.5%. This means that Alexander's is outperforming the sector as a whole this year.
Another Finance stock, which has outperformed the sector so far this year, is Capital Southwest (CSWC). The stock has returned 3.9% year-to-date.
The consensus estimate for Capital Southwest's current year EPS has increased 3.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Alexander's belongs to the REIT and Equity Trust - Other industry, a group that includes 94 individual companies and currently sits at #175 in the Zacks Industry Rank. Stocks in this group have gained about 6.7% so far this year, so ALX is performing better this group in terms of year-to-date returns.
In contrast, Capital Southwest falls under the Financial - Investment Management industry. Currently, this industry has 37 stocks and is ranked #147. Since the beginning of the year, the industry has moved -8.3%.
Investors interested in the Finance sector may want to keep a close eye on Alexander's and Capital Southwest as they attempt to continue their solid performance.
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Alexander's, Inc. (ALX): Free Stock Analysis Report Capital Southwest Corporation (CSWC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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