For those looking to find strong financial stocks, it is prudent to look for group companies that outperform their peers. Has the Bay Commercial Bank (BCML) been one of those stocks this year? A quick look at the company’s year-to-date performance relative to the rest of the financial industry should help answer that question.
Bay Commercial Bank is part of the Finance sector. This group comprises 890 individual stocks and currently holds a Zacks Sector Rank of #6. The Zacks Sector Ranking considers 16 different groups, measuring the average Zacks Rank of individual stocks within the sector to gauge the strength of each group.
The Zacks ranking emphasizes earnings estimates and estimate revisions to find stocks with improved earnings prospects. This system has a long history of success, and these stocks tend to beat the market over the next one to three months. Bay Commercial Bank currently sports a Zacks rank of #1 (Strong Buy).
Over the past 90 days, the Zacks consensus estimate for BCML’s annual earnings has risen 23.2%. This is a sign of improving analyst sentiment and a positive trend in the earnings outlook.
Based on the latest available data, BCML has gained around 10.2% so far this year. At the same time, financial stocks lost an average of 17.8%. This means that Bay Commercial Bank has outperformed its sector in terms of returns year-to-date.
Another financial sector stock, Chemung Financial (CHMG), has outperformed the sector so far this year. The return on the share since the beginning of the year is 1.2%.
Over the past three months, Chemung Financial’s current-year EPS consensus estimate has risen 9.5%. The stock currently has a Zacks rank #2 (buy).
Specifically, Bay Commercial Bank belongs to the Banks – West industry, which comprises 34 individual stocks and is currently ranked 49th in the Zacks industry rankings. This group has lost an average of 26% so far this year, so BCML is doing better in this area.
Chemung Financial, however, belongs to the Banks – Southeast industry. Currently, this 64-stock industry is ranked #50. The industry is up -13.7% so far this year.
Going forward, investors interested in financials stocks should continue to pay close attention to Bay Commercial Bank and Chemung Financial as they may maintain their strong performance.
Zacks names ‘only one best choice for doubling up’
From thousands of stocks, 5 Zacks experts have each picked their favorite to skyrocket by +100% or more in the coming months. Of these 5, Research Director Sheraz Mian selects one to have the most explosive advantage of all.
It’s a little-known chemical company that’s up 65% year-on-year, but still very cheap. With relentless demand, rising earnings estimates for 2022 and $1.5 billion for stock buybacks, retail investors could jump in at any moment.
This company could rival or surpass other recent Zacks stocks which are expected to double, such as Boston Beer Company which jumped +143.0% in just over 9 months and NVIDIA which jumped +175.9% in one. year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.