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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 America (BAC) 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? One simple way to answer this question is to take a look at the year-to-date performance of BAC and the rest of the Finance group's stocks.
Bank of America is a member of the Finance sector. This group includes 900 individual stocks and currently holds a Zacks Sector Rank of #3. 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. BAC is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for BAC's full-year earnings has moved 21.22% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, BAC has returned 29.17% so far this year. At the same time, Finance stocks have gained an average of 14.27%. As we can see, Bank of America is performing better than its sector in the calendar year.
Looking more specifically, BAC belongs to the Banks - Major Regional industry, a group that includes 15 individual stocks and currently sits at #27 in the Zacks Industry Rank. This group has gained an average of 25.57% so far this year, so BAC is performing better in this area.
BAC will likely be looking to continue its solid performance, so investors interested in Finance stocks should continue to pay close attention to the company.
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Bank of America Corporation (BAC) : Free Stock Analysis Report
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