The Finance group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Banco De Chile (BCH) been one of those stocks this year? 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.
Banco De Chile is one of 883 companies in the Finance group. The Finance group currently sits at #3 within 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 is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Banco De Chile is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for BCH’s full-year earnings has moved 21% higher. This shows that analyst sentiment has improved and the company’s earnings outlook is stronger.
Our latest available data shows that BCH has returned about 10.9% since the start of the calendar year. Meanwhile, the Finance sector has returned an average of -21% on a year-to-date basis. This means that Banco De Chile is performing better than its sector in terms of year-to-date returns.
Another Finance stock, which has outperformed the sector so far this year, is Cullen/Frost Bankers (CFR). The stock has returned 6.1% year-to-date.
In Cullen/Frost Bankers’ case, the consensus EPS estimate for the current year increased 7.1% over the past three months. The currently stock has a Zacks Rank #2 (Buy).
Breaking things down more, Banco De Chile is a member of the Banks – Foreign industry, which includes 66 individual companies and currently sits at #53 in the Zacks Industry Rank. On average, this group has lost an average of 14.2% so far this year, meaning that BCH is performing better in terms of year-to-date returns.
On the other hand, Cullen/Frost Bankers belongs to the Banks – Southwest industry. This 18-stock industry is currently ranked #78. The industry has moved -0.6% year to date.
Going forward, investors interested in Finance stocks should continue to pay close attention to Banco De Chile and Cullen/Frost Bankers as they could maintain their solid performance.
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