For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Has BCB Bancorp (BCBP) 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.
BCB Bancorp is one of 885 individual stocks in the Finance sector. Collectively, these companies sit at #3 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. BCB Bancorp is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for BCBP's full-year earnings has moved 15.4% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that BCBP has returned about 25.5% since the start of the calendar year. At the same time, Finance stocks have lost an average of 10%. This means that BCB Bancorp is outperforming the sector as a whole this year.
One other Finance stock that has outperformed the sector so far this year is Main Street Capital (MAIN). The stock is up 0.1% year-to-date.
The consensus estimate for Main Street Capital's current year EPS has increased 2.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, BCB Bancorp belongs to the Banks - Northeast industry, which includes 90 individual stocks and currently sits at #17 in the Zacks Industry Rank. This group has lost an average of 11.8% so far this year, so BCBP is performing better in this area.
On the other hand, Main Street Capital belongs to the Financial - SBIC & Commercial Industry industry. This 37-stock industry is currently ranked #46. The industry has moved -1.7% year to date.
Investors with an interest in Finance stocks should continue to track BCB Bancorp and Main Street Capital. These stocks will be looking to continue their solid performance.
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