Investors interested in Finance stocks should always be looking to find the best-performing companies in the group. Is Banco Bradesco (BBD) one of those stocks right now? 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.
Banco Bradesco is a member of our Finance group, which includes 870 different companies and currently sits at #6 in the Zacks Sector Rank. 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 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. Banco Bradesco is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for BBD's full-year earnings has moved 9.3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, BBD has returned 61.8% so far this year. Meanwhile, stocks in the Finance group have gained about 8.9% on average. This means that Banco Bradesco is outperforming the sector as a whole this year.
Another Finance stock, which has outperformed the sector so far this year, is Bank of Montreal (BMO). The stock has returned 14.7% year-to-date.
Over the past three months, Bank of Montreal's consensus EPS estimate for the current year has increased 1.8%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Banco Bradesco belongs to the Banks - Foreign industry, which includes 67 individual stocks and currently sits at #26 in the Zacks Industry Rank. This group has gained an average of 26.2% so far this year, so BBD is performing better in this area. Bank of Montreal is also part of the same industry.
Going forward, investors interested in Finance stocks should continue to pay close attention to Banco Bradesco and Bank of Montreal as they could maintain their solid performance.
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Banco Bradesco SA (BBD): Free Stock Analysis Report Bank Of Montreal (BMO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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