The Finance group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Encore Capital Group (ECPG - 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.
Encore Capital Group is one of 843 individual stocks in the Finance sector. Collectively, these companies sit at #8 in 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 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. ECPG is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for ECPG's full-year earnings has moved 5.85% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, ECPG has returned 54.08% so far this year. Meanwhile, stocks in the Finance group have gained about 17.10% on average. This shows that Encore Capital Group is outperforming its peers so far this year.
Breaking things down more, ECPG is a member of the Financial - Consumer Loans industry, which includes 21 individual companies and currently sits at #59 in the Zacks Industry Rank. This group has gained an average of 35.20% so far this year, so ECPG is performing better in this area.
Going forward, investors interested in Finance stocks should continue to pay close attention to ECPG as it looks to continue its solid performance.