Back to top

Image: Bigstock

Are Finance Stocks Lagging Capital Southwest (CSWC) This Year?

Read MoreHide Full Article

Investors interested in Finance stocks should always be looking to find the best-performing companies in the group. Has Capital Southwest (CSWC - Free Report) been one of those stocks this year? 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.

Capital Southwest is one of 879 companies in the Finance group. The Finance group currently sits at #4 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

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. Capital Southwest is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for CSWC's full-year earnings has moved 0.9% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, CSWC has returned 7.5% so far this year. At the same time, Finance stocks have gained an average of 7.3%. This shows that Capital Southwest is outperforming its peers so far this year.

Another stock in the Finance sector, American Healthcare REIT (AHR - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 22.7%.

Over the past three months, American Healthcare REIT's consensus EPS estimate for the current year has increased 2.8%. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Capital Southwest is a member of the Financial - Investment Management industry, which includes 37 individual companies and currently sits at #56 in the Zacks Industry Rank. This group has lost an average of 8.6% so far this year, so CSWC is performing better in this area.

In contrast, American Healthcare REIT falls under the REIT and Equity Trust - Other industry. Currently, this industry has 90 stocks and is ranked #61. Since the beginning of the year, the industry has moved +16.1%.

Capital Southwest and American Healthcare REIT could continue their solid performance, so investors interested in Finance stocks should continue to pay close attention to these stocks.

Published in