For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Encore Capital Group (ECPG) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Finance peers, we might be able to answer that question.
Encore Capital Group is one of 842 companies in the Finance group. The Finance group currently sits at #8 within 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 is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. ECPG is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for ECPG's full-year earnings has moved 4.16% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, ECPG has moved about 53.62% on a year-to-date basis. At the same time, Finance stocks have gained an average of 17.21%. This means that Encore Capital Group is performing better than its sector in terms of year-to-date returns.
Looking more specifically, ECPG belongs to the Financial - Consumer Loans industry, which includes 21 individual stocks and currently sits at #54 in the Zacks Industry Rank. This group has gained an average of 34.24% so far this year, so ECPG is performing better in this area.
ECPG 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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