The Finance group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Banco Bilbao (BBVA) 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.
Banco Bilbao is one of 870 individual stocks in the Finance sector. Collectively, these companies sit at #13 in 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 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. Banco Bilbao is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for BBVA's full-year earnings has moved 7.5% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, BBVA has gained about 19.8% so far this year. At the same time, Finance stocks have gained an average of 7.4%. As we can see, Banco Bilbao is performing better than its sector in the calendar year.
One other Finance stock that has outperformed the sector so far this year is Barclays (BCS). The stock is up 16% year-to-date.
The consensus estimate for Barclays' current year EPS has increased 10.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Banco Bilbao belongs to the Banks - Foreign industry, which includes 67 individual stocks and currently sits at #9 in the Zacks Industry Rank. Stocks in this group have gained about 9.9% so far this year, so BBVA is performing better this group in terms of year-to-date returns. Barclays is also part of the same industry.
Going forward, investors interested in Finance stocks should continue to pay close attention to Banco Bilbao and Barclays as they could maintain their solid performance.
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