For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Axis Capital (AXS) 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.
Axis Capital is one of 871 companies in the Finance group. The Finance group currently sits at #1 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. Axis Capital is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for AXS' full-year earnings has moved 1.8% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, AXS has gained about 56.3% so far this year. In comparison, Finance companies have returned an average of 23.3%. This means that Axis Capital is performing better than its sector in terms of year-to-date returns.
One other Finance stock that has outperformed the sector so far this year is Aflac (AFL). The stock is up 33.6% year-to-date.
In Aflac's case, the consensus EPS estimate for the current year increased 7.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Axis Capital is a member of the Insurance - Property and Casualty industry, which includes 40 individual companies and currently sits at #29 in the Zacks Industry Rank. On average, stocks in this group have gained 30.7% this year, meaning that AXS is performing better in terms of year-to-date returns.
On the other hand, Aflac belongs to the Insurance - Accident and Health industry. This 5-stock industry is currently ranked #14. The industry has moved +37.8% year to date.
Investors interested in the Finance sector may want to keep a close eye on Axis Capital and Aflac as they attempt to continue their solid performance.
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