Back to top

Image: Bigstock

Are Finance Stocks Lagging American Express (AXP) This Year?

Read MoreHide Full Article

For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Is American Express (AXP - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Finance peers, we might be able to answer that question.

American Express is a member of our Finance group, which includes 857 different companies and currently sits at #8 in the Zacks Sector Rank. 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 is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. American Express is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for AXP's full-year earnings has moved 3.6% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that AXP has returned about 13.5% since the start of the calendar year. At the same time, Finance stocks have gained an average of 2.6%. This means that American Express is performing better than its sector in terms of year-to-date returns.

The Bank of New York Mellon Corporation (BK - Free Report) is another Finance stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 6%.

In The Bank of New York Mellon Corporation's case, the consensus EPS estimate for the current year increased 5.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, American Express belongs to the Financial - Miscellaneous Services industry, a group that includes 68 individual companies and currently sits at #163 in the Zacks Industry Rank. On average, stocks in this group have gained 2.3% this year, meaning that AXP is performing better in terms of year-to-date returns.

The Bank of New York Mellon Corporation, however, belongs to the Banks - Major Regional industry. Currently, this 15-stock industry is ranked #57. The industry has moved +3.2% so far this year.

Investors with an interest in Finance stocks should continue to track American Express and The Bank of New York Mellon Corporation. 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:


The Bank of New York Mellon Corporation (BK) - free report >>

American Express Company (AXP) - free report >>

Published in