Back to top

Image: Bigstock

Are Finance Stocks Lagging Deutsche Bank (DB) This Year?

Read MoreHide Full Article

The Finance group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Deutsche Bank (DB - 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Finance sector should help us answer this question.

Deutsche Bank is one of 871 individual stocks in the Finance sector. Collectively, these companies sit at #10 in 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 is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Deutsche Bank is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for DB's full-year earnings has moved 17.6% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that DB has returned about 10% since the start of the calendar year. Meanwhile, the Finance sector has returned an average of -9.4% on a year-to-date basis. This shows that Deutsche Bank is outperforming its peers so far this year.

Another Finance stock, which has outperformed the sector so far this year, is Ellington Financial Inc. (EFC - Free Report) . The stock has returned 9.3% year-to-date.

The consensus estimate for Ellington Financial Inc.'s current year EPS has increased 1.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Deutsche Bank belongs to the Banks - Foreign industry, a group that includes 66 individual stocks and currently sits at #23 in the Zacks Industry Rank. On average, this group has gained an average of 2.6% so far this year, meaning that DB is performing better in terms of year-to-date returns.

In contrast, Ellington Financial Inc. falls under the Financial - Mortgage & Related Services industry. Currently, this industry has 14 stocks and is ranked #163. Since the beginning of the year, the industry has moved -26.9%.

Investors with an interest in Finance stocks should continue to track Deutsche Bank and Ellington Financial Inc. These stocks will be looking to continue their solid performance.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Deutsche Bank Aktiengesellschaft (DB) - free report >>

Ellington Financial Inc. (EFC) - free report >>

Published in