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Is Ellington Residential Mortgage REIT (EARN) Stock Outpacing Its Finance Peers This Year?

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Investors interested in Finance stocks should always be looking to find the best-performing companies in the group. Ellington Residential (EARN - 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.

Ellington Residential is a member of the Finance sector. This group includes 855 individual stocks and currently holds a Zacks Sector Rank of #5. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

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. Ellington Residential is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for EARN's full-year earnings has moved 2% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, EARN has gained about 8.3% so far this year. Meanwhile, the Finance sector has returned an average of 5.8% on a year-to-date basis. This shows that Ellington Residential is outperforming its peers so far this year.

Arch Capital Group (ACGL - 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 23.4%.

In Arch Capital Group's case, the consensus EPS estimate for the current year increased 2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Ellington Residential belongs to the REIT and Equity Trust industry, a group that includes 29 individual companies and currently sits at #176 in the Zacks Industry Rank. On average, this group has lost an average of 5.4% so far this year, meaning that EARN is performing better in terms of year-to-date returns.

Arch Capital Group, however, belongs to the Insurance - Property and Casualty industry. Currently, this 37-stock industry is ranked #20. The industry has moved +15.8% so far this year.

Ellington Residential and Arch Capital Group could continue their solid performance, so investors interested in Finance stocks should continue to pay close attention to these stocks.


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