For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Armada Hoffler Properties (AHH) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Armada Hoffler Properties is one of 874 companies in the Finance group. The Finance group currently sits at #16 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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. Armada Hoffler Properties is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for AHH's 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, AHH has returned 3.1% so far this year. Meanwhile, stocks in the Finance group have gained about 1.6% on average. This means that Armada Hoffler Properties is outperforming the sector as a whole this year.
Main Street Capital (MAIN) is another Finance stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 8%.
Over the past three months, Main Street Capital's consensus EPS estimate for the current year has increased 8.9%. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Armada Hoffler Properties belongs to the REIT and Equity Trust - Residential industry, a group that includes 25 individual stocks and currently sits at #196 in the Zacks Industry Rank. This group has gained an average of 2.7% so far this year, so AHH is performing better in this area.
Main Street Capital, however, belongs to the Financial - SBIC & Commercial Industry industry. Currently, this 34-stock industry is ranked #22. The industry has moved +3.5% so far this year.
Going forward, investors interested in Finance stocks should continue to pay close attention to Armada Hoffler Properties and Main Street Capital as they could maintain their solid performance.
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