The Finance group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. FS KKR Capital (FSK) 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.
FS KKR Capital is one of 870 companies in the Finance group. The Finance group currently sits at #1 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 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. FS KKR Capital is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for FSK's full-year earnings has moved 0.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, FSK has gained about 5.4% so far this year. At the same time, Finance stocks have gained an average of 4.4%. This shows that FS KKR Capital is outperforming its peers so far this year.
Alexander's (ALX) is another Finance stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 6.9%.
For Alexander's, the consensus EPS estimate for the current year has increased 15% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, FS KKR Capital belongs to the Financial - SBIC & Commercial Industry industry, a group that includes 37 individual stocks and currently sits at #54 in the Zacks Industry Rank. On average, this group has gained an average of 3.9% so far this year, meaning that FSK is performing better in terms of year-to-date returns.
On the other hand, Alexander's belongs to the REIT and Equity Trust - Other industry. This 98-stock industry is currently ranked #135. The industry has moved +5.2% year to date.
Going forward, investors interested in Finance stocks should continue to pay close attention to FS KKR Capital and Alexander's as they could maintain their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).
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