Is Bank of America (BAC) Outperforming Other Finance Stocks This Year?

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For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Bank of America (BAC) one of those stocks right now? Let’s take a closer look at the stock’s year-to-date performance to find out.

Bank of America is one of 904 companies in the Finance group. The Finance group currently sits at #3 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. Bank of America is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for BAC’s full-year earnings has moved 4.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, BAC has gained about 44.7% so far this year. In comparison, Finance companies have returned an average of 18.7%. As we can see, Bank of America is performing better than its sector in the calendar year.

American Homes 4 Rent (AMH) is another Finance stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 36.1%.

The consensus estimate for American Homes 4 Rent’s current year EPS has increased 2.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Bank of America belongs to the Banks – Major Regional industry, a group that includes 15 individual companies and currently sits at #102 in the Zacks Industry Rank. On average, stocks in this group have gained 33.8% this year, meaning that BAC is performing better in terms of year-to-date returns.

In contrast, American Homes 4 Rent falls under the REIT and Equity Trust – Residential industry. Currently, this industry has 24 stocks and is ranked #70. Since the beginning of the year, the industry has moved +42.6%.

Investors with an interest in Finance stocks should continue to track Bank of America and American Homes 4 Rent. These stocks will be looking to continue their solid performance.

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Bank of America Corporation (BAC): Free Stock Analysis Report
 
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