Is OFS Capital (OFS) Stock Outpacing Its Finance Peers This Year?

OFS SCM

For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Has OFS Capital (OFS - 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.

OFS Capital is one of 874 companies in the Finance group. The Finance group currently sits at #16 within 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 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. OFS Capital is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for OFS' full-year earnings has moved 5.5% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, OFS has moved about 0.5% on a year-to-date basis. At the same time, Finance stocks have lost an average of 0.1%. This means that OFS Capital is outperforming the sector as a whole this year.

Stellus Capital (SCM - 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 3.2%.

For Stellus Capital, the consensus EPS estimate for the current year has increased 7.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, OFS Capital belongs to the Financial - SBIC & Commercial Industry industry, which includes 34 individual stocks and currently sits at #19 in the Zacks Industry Rank. Stocks in this group have gained about 2.9% so far this year, so OFS is slightly underperforming its industry this group in terms of year-to-date returns. Stellus Capital is also part of the same industry.

Investors with an interest in Finance stocks should continue to track OFS Capital and Stellus Capital. These stocks will be looking to continue their solid performance.

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