The Finance group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Enact Holdings, Inc. (ACT) 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? Let’s take a closer look at the stock’s year-to-date performance to find out.
Enact Holdings, Inc. is one of 873 companies in the Finance group. The Finance group currently sits at #8 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 is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Enact Holdings, Inc. is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for ACT’s full-year earnings has moved 1.4% higher. This shows that analyst sentiment has improved and the company’s earnings outlook is stronger.
Based on the latest available data, ACT has gained about 26.3% so far this year. Meanwhile, stocks in the Finance group have gained about 6.7% on average. This means that Enact Holdings, Inc. 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 Avidia Bancorp, Inc. (AVBC). The stock is up 31.9% year-to-date.
For Avidia Bancorp, Inc., the consensus EPS estimate for the current year has increased 9.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Enact Holdings, Inc. belongs to the Insurance – Multi line industry, a group that includes 46 individual stocks and currently sits at #75 in the Zacks Industry Rank. On average, this group has gained an average of 4.5% so far this year, meaning that ACT is performing better in terms of year-to-date returns.
In contrast, Avidia Bancorp, Inc. falls under the Banks – Northeast industry. Currently, this industry has 66 stocks and is ranked #65. Since the beginning of the year, the industry has moved +21.4%.
Enact Holdings, Inc. and Avidia Bancorp, Inc. could continue their solid performance, so investors interested in Finance stocks should continue to pay close attention to these stocks.
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This article originally published on Zacks Investment Research (zacks.com).
