Are Finance Stocks Lagging HSBC (HSBC) 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. Is HSBC (HSBC) 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.
HSBC is one of 852 companies in the Finance group. The Finance group currently sits at #12 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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. HSBC is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for HSBC's full-year earnings has moved 1.5% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that HSBC has returned about 18.7% since the start of the calendar year. At the same time, Finance stocks have gained an average of 5.8%. This shows that HSBC is outperforming its peers so far this year.
Another Finance stock, which has outperformed the sector so far this year, is American Homes 4 Rent (AMH). The stock has returned 19.4% year-to-date.
For American Homes 4 Rent, the consensus EPS estimate for the current year has increased 2.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, HSBC belongs to the Banks - Foreign industry, a group that includes 64 individual stocks and currently sits at #45 in the Zacks Industry Rank. On average, stocks in this group have gained 9.9% this year, meaning that HSBC is performing better in terms of year-to-date returns.
In contrast, American Homes 4 Rent falls under the REIT and Equity Trust - Residential industry. Currently, this industry has 26 stocks and is ranked #102. Since the beginning of the year, the industry has moved +2.1%.
Going forward, investors interested in Finance stocks should continue to pay close attention to HSBC and American Homes 4 Rent as they could maintain their solid performance.
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HSBC Holdings plc (HSBC) : Free Stock Analysis Report
American Homes 4 Rent (AMH) : Free Stock Analysis Report
