For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Bread Financial Holdings (BFH) 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.
Bread Financial Holdings is one of 881 individual stocks in the Finance sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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. Bread Financial Holdings is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for BFH’s full-year earnings has moved 11.5% higher. This means that analyst sentiment is stronger and the stock’s earnings outlook is improving.
Based on the most recent data, BFH has returned 38.1% so far this year. Meanwhile, the Finance sector has returned an average of 5.3% on a year-to-date basis. This shows that Bread Financial Holdings is outperforming its peers so far this year.
Another stock in the Finance sector, Broadstone Net Lease, Inc. (BNL), has outperformed the sector so far this year. The stock’s year-to-date return is 22.3%.
Over the past three months, Broadstone Net Lease, Inc.’s consensus EPS estimate for the current year has increased 0.8%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Bread Financial Holdings belongs to the Financial – Miscellaneous Services industry, a group that includes 115 individual stocks and currently sits at #104 in the Zacks Industry Rank. On average, stocks in this group have lost 8.2% this year, meaning that BFH is performing better in terms of year-to-date returns.
In contrast, Broadstone Net Lease, Inc. falls under the REIT and Equity Trust – Residential industry. Currently, this industry has 21 stocks and is ranked #80. Since the beginning of the year, the industry has moved +2.4%.
Bread Financial Holdings and Broadstone Net Lease, Inc. could continue their solid performance, so investors interested in Finance stocks should continue to pay close attention to these stocks.
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This article originally published on Zacks Investment Research (zacks.com).
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