Has Starwood Property Trust (STWD) Outpaced Other Finance Stocks This Year?
Investors interested in Finance stocks should always be looking to find the best-performing companies in the group. Starwood Property Trust (STWD) 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.
Starwood Property Trust is a member of the Finance sector. This group includes 893 individual stocks and currently holds a Zacks Sector Rank of #4. 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 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. Starwood Property Trust is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for STWD's full-year earnings has moved 1% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that STWD has returned about 1.9% since the start of the calendar year. In comparison, Finance companies have returned an average of 0.8%. As we can see, Starwood Property Trust is performing better than its sector in the calendar year.
Another stock in the Finance sector, Allegiance Bancshares (ABTX), has outperformed the sector so far this year. The stock's year-to-date return is 8.4%.
In Allegiance Bancshares' case, the consensus EPS estimate for the current year increased 2.8% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Starwood Property Trust is a member of the REIT and Equity Trust industry, which includes 37 individual companies and currently sits at #218 in the Zacks Industry Rank. On average, this group has lost an average of 4.8% so far this year, meaning that STWD is performing better in terms of year-to-date returns.
On the other hand, Allegiance Bancshares belongs to the Banks - Southeast industry. This 66-stock industry is currently ranked #63. The industry has moved -0.6% year to date.
Investors with an interest in Finance stocks should continue to track Starwood Property Trust and Allegiance Bancshares. These stocks will be looking to continue their solid performance.
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