Is Horizon Technology Finance (HRZN) Stock Outpacing Its Finance Peers 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. Horizon Technology Finance (HRZN) 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.
Horizon Technology Finance is a member of our Finance group, which includes 854 different companies and currently sits at #14 in 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. Horizon Technology Finance is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for HRZN's full-year earnings has moved 9.3% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, HRZN has gained about 7.7% so far this year. At the same time, Finance stocks have gained an average of 6.5%. This means that Horizon Technology Finance is outperforming the sector as a whole this year.
Another Finance stock, which has outperformed the sector so far this year, is Invitation Home (INVH). The stock has returned 15.5% year-to-date.
The consensus estimate for Invitation Home's current year EPS has increased 0.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Horizon Technology Finance belongs to the Financial - SBIC & Commercial Industry industry, a group that includes 34 individual stocks and currently sits at #19 in the Zacks Industry Rank. On average, stocks in this group have gained 15.8% this year, meaning that HRZN is slightly underperforming its industry in terms of year-to-date returns.
Invitation Home, however, belongs to the REIT and Equity Trust - Residential industry. Currently, this 26-stock industry is ranked #106. The industry has moved +3.6% so far this year.
Investors interested in the Finance sector may want to keep a close eye on Horizon Technology Finance and Invitation Home as they attempt to continue their solid performance.
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Horizon Technology Finance Corporation (HRZN) : Free Stock Analysis Report
Invitation Home (INVH) : Free Stock Analysis Report
