The Finance group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Rithm (RITM) 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? 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.
Rithm is one of 858 individual stocks in the Finance sector. Collectively, these companies sit at #2 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. Rithm is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for RITM's full-year earnings has moved 4.2% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that RITM has returned about 1.3% since the start of the calendar year. In comparison, Finance companies have returned an average of 0.8%. As we can see, Rithm is performing better than its sector in the calendar year.
Another Finance stock, which has outperformed the sector so far this year, is Banco Comercial Portugues S.A. Unsponsored ADR (BPCGY). The stock has returned 23% year-to-date.
The consensus estimate for Banco Comercial Portugues S.A. Unsponsored ADR's current year EPS has increased 3.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Rithm belongs to the Financial - Miscellaneous Services industry, a group that includes 88 individual stocks and currently sits at #138 in the Zacks Industry Rank. On average, this group has lost an average of 12% so far this year, meaning that RITM is performing better in terms of year-to-date returns.
Banco Comercial Portugues S.A. Unsponsored ADR, however, belongs to the Banks - Foreign industry. Currently, this 66-stock industry is ranked #16. The industry has moved +14.5% so far this year.
Investors with an interest in Finance stocks should continue to track Rithm and Banco Comercial Portugues S.A. Unsponsored ADR. These stocks will be looking to continue their solid performance.
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Rithm Capital Corp. (RITM) : Free Stock Analysis Report
Banco Comercial Portugues S.A. Unsponsored ADR (BPCGY) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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