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Is Discover (DFS) Stock Outpacing Its Finance Peers This Year?

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Investors interested in Finance stocks should always be looking to find the best-performing companies in the group. Discover (DFS - Free Report) 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.

Discover is one of 906 individual stocks in the Finance 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 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. Discover is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for DFS' full-year earnings has moved 6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, DFS has moved about 5.8% on a year-to-date basis. Meanwhile, the Finance sector has returned an average of 2% on a year-to-date basis. This means that Discover is outperforming the sector as a whole this year.

One other Finance stock that has outperformed the sector so far this year is EPR Properties (EPR - Free Report) . The stock is up 2.8% year-to-date.

The consensus estimate for EPR Properties' current year EPS has increased 4.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Discover belongs to the Financial - Consumer Loans industry, a group that includes 20 individual stocks and currently sits at #86 in the Zacks Industry Rank. On average, stocks in this group have gained 2.9% this year, meaning that DFS is performing better in terms of year-to-date returns.

On the other hand, EPR Properties belongs to the REIT and Equity Trust - Retail industry. This 25-stock industry is currently ranked #50. The industry has moved +0.3% year to date.

Discover and EPR Properties could continue their solid performance, so investors interested in Finance stocks should continue to pay close attention to these stocks.


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