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Is Employers Holdings (EIG) Stock Outpacing Its Finance Peers 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. Employers Holdings (EIG - 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.

Employers Holdings is one of 824 individual stocks in the Finance sector. Collectively, these companies sit at #9 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

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. EIG is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for EIG's full-year earnings has moved 1.92% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that EIG has returned about 2.14% since the start of the calendar year. At the same time, Finance stocks have lost an average of 0.72%. As we can see, Employers Holdings is performing better than its sector in the calendar year.

Looking more specifically, EIG belongs to the Insurance - Accident and Health industry, a group that includes 5 individual stocks and currently sits at #111 in the Zacks Industry Rank. On average, stocks in this group have lost 1.41% this year, meaning that EIG is performing better in terms of year-to-date returns.

Going forward, investors interested in Finance stocks should continue to pay close attention to EIG as it looks to continue its solid performance.


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