Is HSBC (HSBC) 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. 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 a member of our Finance group, which includes 848 different companies and currently sits at #12 in the Zacks Sector Rank. 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 proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. HSBC is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for HSBC's full-year earnings has moved 10.5% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, HSBC has returned 29.3% so far this year. At the same time, Finance stocks have gained an average of 3.9%. This means that HSBC is outperforming the sector as a whole this year.
Another Finance stock, which has outperformed the sector so far this year, is American Homes 4 Rent (AMH). The stock has returned 15.5% year-to-date.
Over the past three months, American Homes 4 Rent's consensus EPS estimate for the current year has increased 2.1%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, HSBC belongs to the Banks - Foreign industry, which includes 63 individual stocks and currently sits at #193 in the Zacks Industry Rank. On average, this group has gained an average of 10.2% so far 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 #67. Since the beginning of the year, the industry has moved -2.3%.
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
