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Are Finance Stocks Lagging Ellington Credit Company (EARN) This Year?

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The Finance group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Ellington Credit (EARN - 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? Let's take a closer look at the stock's year-to-date performance to find out.

Ellington Credit is one of 863 companies in the Finance group. The Finance group currently sits at #9 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. Ellington Credit is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for EARN's full-year earnings has moved 2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that EARN has returned about 13.9% since the start of the calendar year. In comparison, Finance companies have returned an average of 8.8%. As we can see, Ellington Credit is performing better than its sector in the calendar year.

Credicorp (BAP - Free Report) is another Finance stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 12.5%.

The consensus estimate for Credicorp's current year EPS has increased 2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Ellington Credit belongs to the REIT and Equity Trust industry, which includes 31 individual stocks and currently sits at #194 in the Zacks Industry Rank. On average, this group has lost an average of 9.7% so far this year, meaning that EARN is performing better in terms of year-to-date returns.

In contrast, Credicorp falls under the Banks - Foreign industry. Currently, this industry has 66 stocks and is ranked #42. Since the beginning of the year, the industry has moved +6.8%.

Ellington Credit and Credicorp could continue their solid performance, so investors interested in Finance stocks should continue to pay close attention to these stocks.


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