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Are Finance Stocks Lagging Arch Capital Group (ACGL) This Year?

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The Finance group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Arch Capital Group (ACGL - 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.

Arch Capital Group is one of 884 companies in the Finance group. The Finance group currently sits at #3 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. Arch Capital Group is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for ACGL's full-year earnings has moved 7.5% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, ACGL has returned 6.4% so far this year. Meanwhile, the Finance sector has returned an average of -10.3% on a year-to-date basis. This shows that Arch Capital Group is outperforming its peers so far this year.

Another stock in the Finance sector, HSBC (HSBC - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 3.4%.

The consensus estimate for HSBC's current year EPS has increased 10.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Arch Capital Group belongs to the Insurance - Property and Casualty industry, a group that includes 39 individual companies and currently sits at #148 in the Zacks Industry Rank. This group has gained an average of 0.5% so far this year, so ACGL is performing better in this area.

HSBC, however, belongs to the Banks - Foreign industry. Currently, this 66-stock industry is ranked #78. The industry has moved -4.8% so far this year.

Going forward, investors interested in Finance stocks should continue to pay close attention to Arch Capital Group and HSBC as they could maintain their solid performance.


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