Is Sumitomo (SSUMY) Stock Outpacing Its Conglomerates Peers This Year?
The Conglomerates group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Sumitomo Corp. (SSUMY) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Conglomerates peers, we might be able to answer that question.
Sumitomo Corp. is one of 24 individual stocks in the Conglomerates sector. Collectively, these companies sit at #1 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Sumitomo Corp. is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for SSUMY's full-year earnings has moved 4.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, SSUMY has gained about 2.6% so far this year. Meanwhile, the Conglomerates sector has returned an average of -6.6% on a year-to-date basis. This shows that Sumitomo Corp. is outperforming its peers so far this year.
One other Conglomerates stock that has outperformed the sector so far this year is Vector Group (VGR). The stock is up 32.2% year-to-date.
Over the past three months, Vector Group's consensus EPS estimate for the current year has increased 5.2%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Sumitomo Corp. is a member of the Diversified Operations industry, which includes 24 individual companies and currently sits at #42 in the Zacks Industry Rank. Stocks in this group have lost about 6.6% so far this year, so SSUMY is performing better this group in terms of year-to-date returns. Vector Group is also part of the same industry.
Investors interested in the Conglomerates sector may want to keep a close eye on Sumitomo Corp. and Vector Group as they attempt to continue their solid performance.
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Sumitomo Corp. (SSUMY) : Free Stock Analysis Report
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