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Is Banco Bradesco (BBD) Outperforming Other Finance Stocks 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. Is Banco Bradesco (BBD - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Banco Bradesco is a member of our Finance group, which includes 893 different companies and currently sits at #5 in 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 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).

The Zacks Consensus Estimate for BBD's full-year earnings has moved 8% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, BBD has gained about 38% so far this year. Meanwhile, the Finance sector has returned an average of -8.7% on a year-to-date basis. This means that Banco Bradesco is performing better than its sector in terms of year-to-date returns.

Another stock in the Finance sector, Capital City Bank (CCBG - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 2.2%.

In Capital City Bank's case, the consensus EPS estimate for the current year increased 25% 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, a group that includes 60 individual stocks and currently sits at #102 in the Zacks Industry Rank. On average, stocks in this group have gained 2.3% this year, meaning that BBD is performing better in terms of year-to-date returns.

In contrast, Capital City Bank falls under the Banks - Southeast industry. Currently, this industry has 66 stocks and is ranked #38. Since the beginning of the year, the industry has moved -5.5%.

Going forward, investors interested in Finance stocks should continue to pay close attention to Banco Bradesco and Capital City Bank as they could maintain their solid performance.


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