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Is HSBC (HSBC) Stock Outpacing Its Finance Peers 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. HSBC (HSBC - 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.

HSBC is a member of the Finance sector. This group includes 885 individual stocks and currently holds a Zacks Sector Rank of #1. 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 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. HSBC is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for HSBC's full-year earnings has moved 5.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, HSBC has moved about 2.4% on a year-to-date basis. Meanwhile, stocks in the Finance group have lost about 9.5% on average. This shows that HSBC is outperforming its peers so far this year.

One other Finance stock that has outperformed the sector so far this year is Banco De Chile (BCH - Free Report) . The stock is up 20% year-to-date.

In Banco De Chile's case, the consensus EPS estimate for the current year increased 8.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, HSBC belongs to the Banks - Foreign industry, a group that includes 67 individual stocks and currently sits at #49 in the Zacks Industry Rank. Stocks in this group have lost about 1.7% so far this year, so HSBC is performing better this group in terms of year-to-date returns. Banco De Chile is also part of the same industry.

Investors with an interest in Finance stocks should continue to track HSBC and Banco De Chile. These stocks will be looking to continue their solid performance.


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