The Finance group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. CME Group (CME) 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.
CME Group is a member of the Finance sector. This group includes 858 individual stocks and currently holds a Zacks Sector Rank of #2. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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. CME Group is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for CME's full-year earnings has moved 7.5% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, CME has moved about 19.3% on a year-to-date basis. Meanwhile, stocks in the Finance group have gained about 1.2% on average. This means that CME Group 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 Banco De Chile (BCH). The stock is up 30.2% year-to-date.
Over the past three months, Banco De Chile's consensus EPS estimate for the current year has increased 2.7%. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, CME Group belongs to the Securities and Exchanges industry, a group that includes 7 individual companies and currently sits at #8 in the Zacks Industry Rank. This group has gained an average of 12.4% so far this year, so CME is performing better in this area.
In contrast, Banco De Chile falls under the Banks - Foreign industry. Currently, this industry has 66 stocks and is ranked #11. Since the beginning of the year, the industry has moved +14.7%.
Going forward, investors interested in Finance stocks should continue to pay close attention to CME Group and Banco De Chile as they could maintain their solid performance.
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CME Group Inc. (CME): Free Stock Analysis Report Banco De Chile (BCH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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