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Are Finance Stocks Lagging Federal Agricultural Mortgage (AGM) 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. Has Federal Agricultural Mortgage (AGM - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Finance peers, we might be able to answer that question.

Federal Agricultural Mortgage is one of 870 companies in the Finance group. The Finance group currently sits at #16 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 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. Federal Agricultural Mortgage is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for AGM's full-year earnings has moved 3.6% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, AGM has returned 33.1% so far this year. In comparison, Finance companies have returned an average of 4.7%. This shows that Federal Agricultural Mortgage is outperforming its peers so far this year.

Another stock in the Finance sector, Lemonade (LMND - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 54.2%.

The consensus estimate for Lemonade's current year EPS has increased 10.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Federal Agricultural Mortgage is a member of the Financial - Mortgage & Related Services industry, which includes 15 individual companies and currently sits at #202 in the Zacks Industry Rank. Stocks in this group have gained about 16.1% so far this year, so AGM is performing better this group in terms of year-to-date returns.

Lemonade, however, belongs to the Insurance - Multi line industry. Currently, this 34-stock industry is ranked #74. The industry has moved -9.9% so far this year.

Going forward, investors interested in Finance stocks should continue to pay close attention to Federal Agricultural Mortgage and Lemonade as they could maintain their solid performance.


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