Yahoo Finance Is Enact Holdings (ACT) Outperforming Other Finance Stocks This Year?
For those looking to find strong Finance stocks, it is prudent to search for companies in the group 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? 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.
Enact Holdings, Inc. is one of 872 companies in the Finance group. The Finance group currently sits at #16 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. Enact Holdings, Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for ACT's full-year earnings has moved 8.9% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, ACT has returned 0.7% so far this year. Meanwhile, the Finance sector has returned an average of 0.5% on a year-to-date basis. This means that Enact Holdings, Inc. is outperforming the sector as a whole this year.
Another Finance stock, which has outperformed the sector so far this year, is Assurant (AIZ). The stock has returned 3.3% year-to-date.
In Assurant's case, the consensus EPS estimate for the current year increased 20.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Enact Holdings, Inc. belongs to the Insurance - Multi line industry, a group that includes 34 individual companies and currently sits at #43 in the Zacks Industry Rank. On average, this group has lost an average of 13% so far this year, meaning that ACT is performing better in terms of year-to-date returns. Assurant is also part of the same industry.
Enact Holdings, Inc. and Assurant could continue their solid performance, so investors interested in Finance stocks should continue to pay close attention to these stocks.
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