The Finance group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. BB Seguridade Participacoes SA (BBSEY) 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.
BB Seguridade Participacoes SA is a member of the Finance sector. This group includes 881 individual stocks and currently holds a Zacks Sector Rank of #4. 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. BB Seguridade Participacoes SA is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for BBSEY's full-year earnings has moved 6.1% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, BBSEY has moved about 10.1% on a year-to-date basis. At the same time, Finance stocks have gained an average of 4.6%. This means that BB Seguridade Participacoes SA 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 Equinix (EQIX). The stock is up 32.3% year-to-date.
For Equinix, the consensus EPS estimate for the current year has increased 2.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, BB Seguridade Participacoes SA belongs to the Financial - Miscellaneous Services industry, a group that includes 115 individual companies and currently sits at #108 in the Zacks Industry Rank. Stocks in this group have lost about 9% so far this year, so BBSEY is performing better this group in terms of year-to-date returns.
Equinix, however, belongs to the REIT and Equity Trust - Retail industry. Currently, this 19-stock industry is ranked #90. The industry has moved +19.7% so far this year.
Investors with an interest in Finance stocks should continue to track BB Seguridade Participacoes SA and Equinix. These stocks will be looking to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).