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Is California Bank of Commerce (CALB) 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 California Bank of Commerce one of those stocks right now? 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.

California Bank of Commerce is one of 886 companies in the Finance group. The Finance group currently sits at #4 within 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. California Bank of Commerce is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for CALB's full-year earnings has moved 3.5% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, CALB has returned 4% so far this year. In comparison, Finance companies have returned an average of -16.2%. This shows that California Bank of Commerce is outperforming its peers so far this year.

Another Finance stock, which has outperformed the sector so far this year, is LPL Financial Holdings Inc. (LPLA - Free Report) . The stock has returned 61.7% year-to-date.

For LPL Financial Holdings Inc. the consensus EPS estimate for the current year has increased 10.7% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, California Bank of Commerce is a member of the Banks - Southwest industry, which includes 19 individual companies and currently sits at #40 in the Zacks Industry Rank. Stocks in this group have gained about 4.1% so far this year, so CALB is slightly underperforming its industry this group in terms of year-to-date returns.

In contrast, LPL Financial Holdings Inc. falls under the Financial - Investment Bank industry. Currently, this industry has 18 stocks and is ranked #153. Since the beginning of the year, the industry has moved -8.1%.

Going forward, investors interested in Finance stocks should continue to pay close attention to California Bank of Commerce and LPL Financial Holdings Inc. as they could maintain their solid performance.


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