Has AvalonBay Communities (AVB) Outpaced Other Finance Stocks 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. AvalonBay Communities (AVB) 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.
AvalonBay Communities is a member of our Finance group, which includes 848 different companies and currently sits at #11 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. AvalonBay Communities is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for AVB's full-year earnings has moved 1.1% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, AVB has moved about 5.4% on a year-to-date basis. At the same time, Finance stocks have gained an average of 2.3%. As we can see, AvalonBay Communities is performing better than its sector in the calendar year.
Another Finance stock, which has outperformed the sector so far this year, is Hercules Capital (HTGC). The stock has returned 18.8% year-to-date.
Over the past three months, Hercules Capital's consensus EPS estimate for the current year has increased 2.5%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, AvalonBay Communities belongs to the REIT and Equity Trust - Residential industry, a group that includes 26 individual stocks and currently sits at #65 in the Zacks Industry Rank. On average, this group has lost an average of 3.8% so far this year, meaning that AVB is performing better in terms of year-to-date returns.
In contrast, Hercules Capital falls under the Financial - SBIC & Commercial Industry industry. Currently, this industry has 34 stocks and is ranked #32. Since the beginning of the year, the industry has moved +15.4%.
Going forward, investors interested in Finance stocks should continue to pay close attention to AvalonBay Communities and Hercules Capital as they could maintain their solid performance.
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AvalonBay Communities, Inc. (AVB) : Free Stock Analysis Report
Hercules Capital, Inc. (HTGC) : Free Stock Analysis Report
