For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Credicorp (BAP) 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.
Credicorp is a member of our Finance group, which includes 871 different companies and currently sits at #16 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 is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Credicorp is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for BAP's full-year earnings has moved 3.6% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that BAP has returned about 1.7% since the start of the calendar year. Meanwhile, stocks in the Finance group have gained about 0.9% on average. This means that Credicorp is outperforming the sector as a whole this year.
Another Finance stock, which has outperformed the sector so far this year, is JPMorgan Chase & Co. (JPM). The stock has returned 3.7% year-to-date.
For JPMorgan Chase & Co. the consensus EPS estimate for the current year has increased 10.8% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Credicorp belongs to the Banks - Foreign industry, a group that includes 68 individual companies and currently sits at #85 in the Zacks Industry Rank. On average, this group has gained an average of 5.2% so far this year, meaning that BAP is slightly underperforming its industry in terms of year-to-date returns.
In contrast, JPMorgan Chase & Co. falls under the Banks - Major Regional industry. Currently, this industry has 15 stocks and is ranked #169. Since the beginning of the year, the industry has moved -6.4%.
Going forward, investors interested in Finance stocks should continue to pay close attention to Credicorp and JPMorgan Chase & Co. as they could maintain their solid performance.
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