For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Northern Trust Corporation (NTRS) one of those stocks right now? 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.
Northern Trust Corporation is a member of the Finance sector. This group includes 871 individual stocks and currently holds a Zacks Sector Rank of #3. 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 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. Northern Trust Corporation is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for NTRS' full-year earnings has moved 2% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, NTRS has returned 21.5% so far this year. Meanwhile, the Finance sector has returned an average of 20% on a year-to-date basis. This shows that Northern Trust Corporation is outperforming its peers so far this year.
AvalonBay Communities (AVB) is another Finance stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 22.6%.
Over the past three months, AvalonBay Communities' consensus EPS estimate for the current year has increased 0.9%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Northern Trust Corporation belongs to the Banks - Major Regional industry, which includes 15 individual stocks and currently sits at #27 in the Zacks Industry Rank. This group has lost an average of 30.1% so far this year, so NTRS is performing better in this area.
AvalonBay Communities, however, belongs to the REIT and Equity Trust - Residential industry. Currently, this 23-stock industry is ranked #83. The industry has moved +12.7% so far this year.
Investors with an interest in Finance stocks should continue to track Northern Trust Corporation and AvalonBay Communities. These stocks will be looking to continue their solid performance.
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