Is Brown & Brown (BRO) Outperforming Other Finance Stocks This Year?

Zacks
03-26

Investors interested in Finance stocks should always be looking to find the best-performing companies in the group. Brown & Brown (BRO) 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? 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.

Brown & Brown is one of 867 companies in the Finance group. The Finance group currently sits at #2 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. Brown & Brown is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for BRO's full-year earnings has moved 1.9% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, BRO has gained about 19% so far this year. In comparison, Finance companies have returned an average of 4.3%. This means that Brown & Brown is outperforming the sector as a whole this year.

Another stock in the Finance sector, Pagaya Technologies Ltd. (PGY), has outperformed the sector so far this year. The stock's year-to-date return is 33.1%.

Over the past three months, Pagaya Technologies Ltd.'s consensus EPS estimate for the current year has increased 13.6%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Brown & Brown belongs to the Insurance - Brokerage industry, which includes 9 individual stocks and currently sits at #27 in the Zacks Industry Rank. On average, this group has gained an average of 12.4% so far this year, meaning that BRO is performing better in terms of year-to-date returns.

On the other hand, Pagaya Technologies Ltd. belongs to the Financial - Miscellaneous Services industry. This 86-stock industry is currently ranked #31. The industry has moved -5.3% year to date.

Investors interested in the Finance sector may want to keep a close eye on Brown & Brown and Pagaya Technologies Ltd. as they attempt to continue their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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