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Is Arch Capital Group (ACGL) Stock Outpacing Its Finance Peers 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 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 887 companies in the Finance group. The Finance group currently sits at #4 within the Zacks Sector Rank. 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 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 #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for ACGL's full-year earnings has moved 4.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that ACGL has returned about 9.6% since the start of the calendar year. At the same time, Finance stocks have lost an average of 19.4%. This shows that Arch Capital Group is outperforming its peers so far this year.

Another stock in the Finance sector, Banco Do Brasil SA (BDORY - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 53%.

In Banco Do Brasil SA's case, the consensus EPS estimate for the current year increased 17.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Arch Capital Group is a member of the Insurance - Property and Casualty industry, which includes 40 individual companies and currently sits at #158 in the Zacks Industry Rank. This group has lost an average of 4.9% so far this year, so ACGL is performing better in this area.

On the other hand, Banco Do Brasil SA belongs to the Banks - Foreign industry. This 68-stock industry is currently ranked #86. The industry has moved -11.9% year to date.

Arch Capital Group and Banco Do Brasil SA could continue their solid performance, so investors interested in Finance stocks should continue to pay close attention to these stocks.


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