For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Solar Capital (SLRC - 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.
Solar Capital is one of 827 individual stocks in the Finance sector. Collectively, these companies sit at #9 in 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. SLRC is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for SLRC's full-year earnings has moved 2.54% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, SLRC has moved about 1.93% on a year-to-date basis. At the same time, Finance stocks have lost an average of 4.20%. This means that Solar Capital is performing better than its sector in terms of year-to-date returns.
Looking more specifically, SLRC belongs to the Financial - SBIC & Commercial Industry industry, a group that includes 35 individual stocks and currently sits at #161 in the Zacks Industry Rank. Stocks in this group have gained about 6.88% so far this year, so SLRC is slightly underperforming its industry this group in terms of year-to-date returns.
SLRC will likely be looking to continue its solid performance, so investors interested Finance stocks should continue to pay close attention to the company.