Are Finance Stocks Lagging Enact Holdings (ACT) 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. Enact Holdings, Inc. (ACT) 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.
Enact Holdings, Inc. is a member of the Finance sector. This group includes 853 individual stocks and currently holds a Zacks Sector Rank of #15. 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. Enact Holdings, Inc. is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for ACT's full-year earnings has moved 8.9% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, ACT has returned 18% so far this year. Meanwhile, the Finance sector has returned an average of 5.3% on a year-to-date basis. This shows that Enact Holdings, Inc. is outperforming its peers so far this year.
Another stock in the Finance sector, Omega Healthcare Investors (OHI), has outperformed the sector so far this year. The stock's year-to-date return is 8%.
In Omega Healthcare Investors' case, the consensus EPS estimate for the current year increased 2.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Enact Holdings, Inc. belongs to the Insurance - Multi line industry, a group that includes 35 individual stocks and currently sits at #103 in the Zacks Industry Rank. Stocks in this group have lost about 7.9% so far this year, so ACT is performing better this group in terms of year-to-date returns.
On the other hand, Omega Healthcare Investors belongs to the REIT and Equity Trust - Other industry. This 100-stock industry is currently ranked #197. The industry has moved -3.7% year to date.
Investors interested in the Finance sector may want to keep a close eye on Enact Holdings, Inc. and Omega Healthcare Investors as they attempt to continue their solid performance.
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