Back to top

Image: Bigstock

Has Banco Bradesco (BBD) Outpaced Other Finance Stocks This Year?

Read MoreHide Full Article

For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Banco Bradesco (BBD - 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? Let's take a closer look at the stock's year-to-date performance to find out.

Banco Bradesco is a member of the Finance sector. This group includes 895 individual stocks and currently holds a Zacks Sector Rank of #3. 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 Bradesco is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for BBD's full-year earnings has moved 2.9% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, BBD has returned 24.2% so far this year. Meanwhile, stocks in the Finance group have lost about 6.4% on average. This shows that Banco Bradesco is outperforming its peers so far this year.

Bay Commercial Bank (BCML - 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 24.2%.

For Bay Commercial Bank, the consensus EPS estimate for the current year has increased 4.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Banco Bradesco belongs to the Banks - Foreign industry, which includes 60 individual stocks and currently sits at #178 in the Zacks Industry Rank. On average, this group has lost an average of 0.3% so far this year, meaning that BBD is performing better in terms of year-to-date returns.

Bay Commercial Bank, however, belongs to the Banks - West industry. Currently, this 34-stock industry is ranked #17. The industry has moved -14.8% so far this year.

Banco Bradesco and Bay Commercial Bank could continue their solid performance, so investors interested in Finance stocks should continue to pay close attention to these stocks.

In-Depth Zacks Research for the Tickers Above

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

Banco Bradesco SA (BBD) - free report >>

Bay Commercial Bank (BCML) - free report >>

Published in