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Has The Charles Schwab (SCHW) Outpaced Other Finance Stocks 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. The Charles Schwab (SCHW - 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? 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.

The Charles Schwab is one of 828 companies in the Finance group. The Finance group currently sits at #11 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

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

Within the past quarter, the Zacks Consensus Estimate for SCHW's full-year earnings has moved 1.30% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, SCHW has gained about 3.31% so far this year. At the same time, Finance stocks have lost an average of 3.71%. This means that The Charles Schwab is outperforming the sector as a whole this year.

Looking more specifically, SCHW belongs to the Financial - Investment Bank industry, which includes 22 individual stocks and currently sits at #64 in the Zacks Industry Rank. This group has lost an average of 2.64% so far this year, so SCHW is performing better in this area.

Going forward, investors interested in Finance stocks should continue to pay close attention to SCHW as it looks to continue its solid performance.


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