For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Bank of Montreal (BMO) 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.
Bank of Montreal is one of 835 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. Bank of Montreal is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for BMO's full-year earnings has moved 4.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, BMO has returned 17.2% so far this year. In comparison, Finance companies have returned an average of -0.9%. This shows that Bank of Montreal is outperforming its peers so far this year.
Another Finance stock, which has outperformed the sector so far this year, is Apple Hospitality REIT (APLE). The stock has returned 11.3% year-to-date.
The consensus estimate for Apple Hospitality REIT's current year EPS has increased 0.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Bank of Montreal belongs to the Banks - Foreign industry, which includes 66 individual stocks and currently sits at #156 in the Zacks Industry Rank. Stocks in this group have gained about 1.9% so far this year, so BMO is performing better this group in terms of year-to-date returns.
On the other hand, Apple Hospitality REIT belongs to the REIT and Equity Trust - Other industry. This 91-stock industry is currently ranked #54. The industry has moved +9.1% year to date.
Investors interested in the Finance sector may want to keep a close eye on Bank of Montreal and Apple Hospitality REIT as they attempt to continue their solid performance.
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Bank Of Montreal (BMO): Free Stock Analysis Report
Apple Hospitality REIT, Inc. (APLE): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).