For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Credicorp (BAP) 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.
Credicorp is one of 894 individual stocks in the Finance sector. Collectively, these companies sit at #3 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 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).
The Zacks Consensus Estimate for BAP’s full-year earnings has moved 7.9% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that BAP has returned about 34.9% since the start of the calendar year. At the same time, Finance stocks have lost an average of 5.5%. As we can see, Credicorp is performing better than its sector in the calendar year.
Another stock in the Finance sector, Berkshire Hathaway B (BRK.B), has outperformed the sector so far this year. The stock’s year-to-date return is 11.2%.
Over the past three months, Berkshire Hathaway B’s consensus EPS estimate for the current year has increased 1.5%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Credicorp belongs to the Banks – Foreign industry, a group that includes 62 individual stocks and currently sits at #75 in the Zacks Industry Rank. Stocks in this group have gained about 1.6% so far this year, so BAP is performing better this group in terms of year-to-date returns.
In contrast, Berkshire Hathaway B falls under the Insurance – Property and Casualty industry. Currently, this industry has 40 stocks and is ranked #67. Since the beginning of the year, the industry has moved +9.6%.
Investors interested in the Finance sector may want to keep a close eye on Credicorp and Berkshire Hathaway B as they attempt to continue their solid performance.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.