Back to top

Image: Bigstock

Has Ares Commercial Real Estate (ACRE) Outpaced Other Finance Stocks This Year?

Read MoreHide Full Article

Investors interested in Finance stocks should always be looking to find the best-performing companies in the group. Is Ares Commercial Real Estate (ACRE - Free Report) one of those stocks right now? 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.

Ares Commercial Real Estate is one of 902 companies in the Finance group. The Finance group currently sits at #2 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Ares Commercial Real Estate is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for ACRE's full-year earnings has moved 5.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, ACRE has gained about 21.6% so far this year. Meanwhile, the Finance sector has returned an average of 20.6% on a year-to-date basis. This shows that Ares Commercial Real Estate is outperforming its peers so far this year.

Another Finance stock, which has outperformed the sector so far this year, is KKR & Co. Inc. (KKR - Free Report) . The stock has returned 78.2% year-to-date.

In KKR & Co. Inc.'s case, the consensus EPS estimate for the current year increased 13.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Ares Commercial Real Estate belongs to the REIT and Equity Trust industry, a group that includes 35 individual companies and currently sits at #92 in the Zacks Industry Rank. On average, stocks in this group have gained 15.4% this year, meaning that ACRE is performing better in terms of year-to-date returns.

KKR & Co. Inc. however, belongs to the Financial - Investment Management industry. Currently, this 44-stock industry is ranked #46. The industry has moved +16.2% so far this year.

Investors with an interest in Finance stocks should continue to track Ares Commercial Real Estate and KKR & Co. Inc. These stocks will be looking to continue their solid performance.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Ares Commercial Real Estate Corporation (ACRE) - free report >>

KKR & Co. Inc. (KKR) - free report >>

Published in