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It goes without saying that there has been turmoil within the Finance sector, with regional bank fears gripping the market.
However, not all pockets of the sector have been as negative, including stocks such as Unum Group (UNM - Free Report) , Arch Capital (ACGL - Free Report) , and The Travelers Companies (TRV - Free Report) . Below is a chart illustrating the performance of each over the last month, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
As we can see, all three have provided solid returns, indicating positive momentum. Let’s take a closer look at how each currently stacks up.
Unum Group
Unum Group provides disability insurance, long-term care insurance, life insurance, and employee-paid group benefits and related services. The company has witnessed positive earnings estimate revisions over the last several months, helping land the stock into a favorable Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
The company posted solid quarterly results in its latest release, exceeding EPS expectations by 13%. In fact, UNM has been a consistent earnings performer, carrying an average 18.6% trailing four-quarter EPS surprise.
In addition, shares aren’t expensive, with the current 6.5X forward earnings multiple residing near the five-year median and well below the Zacks Finance sector average.
Image Source: Zacks Investment Research
The Travelers Companies
Travelers Companies is engaged in providing a wide variety of property and casualty insurance and surety products and services. The stock presently carries a Zacks Rank #2 (Buy).
The company boasts a shareholder-friendly nature, increasing its dividend payout by 4.4% over the last five years. Currently, TRV’s annual dividend yields 2.1%, modestly below the Zacks Finance sector average.
Image Source: Zacks Investment Research
In addition, it’s hard to ignore TRV’s growth profile, with earnings forecasted to climb 15% in its current fiscal year (FY23) and a further 16% in FY24. The projected earnings growth comes on top of forecasted Y/Y revenue upticks of 10% in FY23 and 8% in FY24.
Image Source: Zacks Investment Research
Arch Capital
Arch Capital Group writes insurance, reinsurance, and mortgage insurance worldwide. Currently, the company is a Zacks Rank #3 (Hold).
Like UNM, Arch Capital posted strong results in its latest release, exceeding the Zacks Consensus EPS Estimate by nearly 15%. Quarterly revenue totaled $3.1 billion, 8% ahead of expectations. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Shares saw buyers step up post-earnings, as we can see in the chart below. In fact, shares have regularly seen a boost following quarterly releases over the last year.
Image Source: Zacks Investment Research
Bottom Line
While concerns around regional banking are more than valid, not all pockets of the Finance sector have been weak, including shares of Unum Group (UNM - Free Report) , Arch Capital (ACGL - Free Report) , and The Travelers Companies (TRV - Free Report) .
All three have provided market-beating returns over the last month, displaying notable relative strength.
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3 Finance Stocks Displaying Relative Strength
It goes without saying that there has been turmoil within the Finance sector, with regional bank fears gripping the market.
However, not all pockets of the sector have been as negative, including stocks such as Unum Group (UNM - Free Report) , Arch Capital (ACGL - Free Report) , and The Travelers Companies (TRV - Free Report) . Below is a chart illustrating the performance of each over the last month, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
As we can see, all three have provided solid returns, indicating positive momentum. Let’s take a closer look at how each currently stacks up.
Unum Group
Unum Group provides disability insurance, long-term care insurance, life insurance, and employee-paid group benefits and related services. The company has witnessed positive earnings estimate revisions over the last several months, helping land the stock into a favorable Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
The company posted solid quarterly results in its latest release, exceeding EPS expectations by 13%. In fact, UNM has been a consistent earnings performer, carrying an average 18.6% trailing four-quarter EPS surprise.
In addition, shares aren’t expensive, with the current 6.5X forward earnings multiple residing near the five-year median and well below the Zacks Finance sector average.
Image Source: Zacks Investment Research
The Travelers Companies
Travelers Companies is engaged in providing a wide variety of property and casualty insurance and surety products and services. The stock presently carries a Zacks Rank #2 (Buy).
The company boasts a shareholder-friendly nature, increasing its dividend payout by 4.4% over the last five years. Currently, TRV’s annual dividend yields 2.1%, modestly below the Zacks Finance sector average.
Image Source: Zacks Investment Research
In addition, it’s hard to ignore TRV’s growth profile, with earnings forecasted to climb 15% in its current fiscal year (FY23) and a further 16% in FY24. The projected earnings growth comes on top of forecasted Y/Y revenue upticks of 10% in FY23 and 8% in FY24.
Image Source: Zacks Investment Research
Arch Capital
Arch Capital Group writes insurance, reinsurance, and mortgage insurance worldwide. Currently, the company is a Zacks Rank #3 (Hold).
Like UNM, Arch Capital posted strong results in its latest release, exceeding the Zacks Consensus EPS Estimate by nearly 15%. Quarterly revenue totaled $3.1 billion, 8% ahead of expectations. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Shares saw buyers step up post-earnings, as we can see in the chart below. In fact, shares have regularly seen a boost following quarterly releases over the last year.
Image Source: Zacks Investment Research
Bottom Line
While concerns around regional banking are more than valid, not all pockets of the Finance sector have been weak, including shares of Unum Group (UNM - Free Report) , Arch Capital (ACGL - Free Report) , and The Travelers Companies (TRV - Free Report) .
All three have provided market-beating returns over the last month, displaying notable relative strength.