Is Pebblebrook Hotel Trust (PEB) Stock Outpacing Its Finance Peers This Year?

For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Pebblebrook Hotel (PEB) 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? Let's take a closer look at the stock's year-to-date performance to find out.

Pebblebrook Hotel is a member of our Finance group, which includes 847 different companies and currently sits at #4 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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. Pebblebrook Hotel is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for PEB's full-year earnings has moved 6.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, PEB has returned 10.3% so far this year. In comparison, Finance companies have returned an average of -8.1%. As we can see, Pebblebrook Hotel is performing better than its sector in the calendar year.

Another stock in the Finance sector, Bank of Hawaii (BOH), has outperformed the sector so far this year. The stock's year-to-date return is 6.4%.

For Bank of Hawaii, the consensus EPS estimate for the current year has increased 10.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Pebblebrook Hotel belongs to the REIT and Equity Trust - Other industry, a group that includes 91 individual companies and currently sits at #88 in the Zacks Industry Rank. This group has gained an average of 0.2% so far this year, so PEB is performing better in this area.

On the other hand, Bank of Hawaii belongs to the Banks - West industry. This 27-stock industry is currently ranked #88. The industry has moved -5.7% year to date.

Investors interested in the Finance sector may want to keep a close eye on Pebblebrook Hotel and Bank of Hawaii as they attempt to continue their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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