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Are Finance Stocks Lagging Berkshire Hathaway (BRK.B) 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. Has Berkshire Hathaway B (BRK.B - Free Report) been one of those stocks this year? 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.

Berkshire Hathaway B is a member of the Finance sector. This group includes 854 individual stocks and currently holds a Zacks Sector Rank of #14. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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. Berkshire Hathaway B is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for BRK.B's full-year earnings has moved 2.6% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that BRK.B has returned about 14.3% since the start of the calendar year. Meanwhile, the Finance sector has returned an average of 5.3% on a year-to-date basis. This shows that Berkshire Hathaway B is outperforming its peers so far this year.

One other Finance stock that has outperformed the sector so far this year is Kinsale Capital Group, Inc. (KNSL - Free Report) . The stock is up 41.7% year-to-date.

In Kinsale Capital Group, Inc.'s case, the consensus EPS estimate for the current year increased 11.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Berkshire Hathaway B belongs to the Insurance - Property and Casualty industry, which includes 40 individual stocks and currently sits at #54 in the Zacks Industry Rank. This group has gained an average of 9.8% so far this year, so BRK.B is performing better in this area. Kinsale Capital Group, Inc. is also part of the same industry.

Going forward, investors interested in Finance stocks should continue to pay close attention to Berkshire Hathaway B and Kinsale Capital Group, Inc. as they could maintain their solid performance.


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