Investors interested in Finance stocks should always be looking to find the best-performing companies in the group. Affiliated Managers Group (AMG) 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.
Affiliated Managers Group is one of 873 individual stocks in the Finance sector. Collectively, these companies sit at #4 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. Affiliated Managers Group is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for AMG's full-year earnings has moved 5.7% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, AMG has moved about 23.7% on a year-to-date basis. In comparison, Finance companies have returned an average of 7.4%. As we can see, Affiliated Managers Group is performing better than its sector in the calendar year.
Another Finance stock, which has outperformed the sector so far this year, is Allstate (ALL). The stock has returned 24.6% year-to-date.
In Allstate's case, the consensus EPS estimate for the current year increased 18.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Affiliated Managers Group belongs to the Financial - Investment Management industry, a group that includes 37 individual companies and currently sits at #86 in the Zacks Industry Rank. On average, stocks in this group have lost 5.8% this year, meaning that AMG is performing better in terms of year-to-date returns.
In contrast, Allstate falls under the Insurance - Property and Casualty industry. Currently, this industry has 44 stocks and is ranked #60. Since the beginning of the year, the industry has moved +2.2%.
Investors interested in the Finance sector may want to keep a close eye on Affiliated Managers Group and Allstate as they attempt to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).