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Is Encore Capital Group (ECPG) 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. Has Encore Capital Group (ECPG - 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.

Encore Capital Group is one of 886 individual stocks in the Finance sector. Collectively, these companies sit at #3 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Encore Capital Group is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for ECPG's full-year earnings has moved 57.5% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that ECPG has returned about 14.9% since the start of the calendar year. In comparison, Finance companies have returned an average of -12.2%. This means that Encore Capital Group is outperforming the sector as a whole this year.

Another Finance stock, which has outperformed the sector so far this year, is Enact Holdings, Inc. (ACT - Free Report) . The stock has returned 12.4% year-to-date.

Over the past three months, Enact Holdings, Inc.'s consensus EPS estimate for the current year has increased 2.2%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Encore Capital Group belongs to the Financial - Consumer Loans industry, a group that includes 18 individual stocks and currently sits at #207 in the Zacks Industry Rank. On average, stocks in this group have lost 20.3% this year, meaning that ECPG is performing better in terms of year-to-date returns.

Enact Holdings, Inc. however, belongs to the Insurance - Multi line industry. Currently, this 32-stock industry is ranked #96. The industry has moved -5.8% so far this year.

Encore Capital Group and Enact Holdings, Inc. could continue their solid performance, so investors interested in Finance stocks should continue to pay close attention to these stocks.


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