For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Capital Southwest (CSWC) one of those stocks right now? Let’s take a closer look at the stock’s year-to-date performance to find out.
Capital Southwest is a member of our Finance group, which includes 837 different companies and currently sits at #6 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 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).
Over the past three months, the Zacks Consensus Estimate for CSWC’s full-year earnings has moved 2.5% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, CSWC has moved about 1% on a year-to-date basis. Meanwhile, stocks in the Finance group have lost about 5% on average. This shows that Capital Southwest is outperforming its peers so far this year.
One other Finance stock that has outperformed the sector so far this year is Sierra Bancorp (BSRR). The stock is up 4% year-to-date.
In Sierra Bancorp’s case, the consensus EPS estimate for the current year increased 4.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Capital Southwest belongs to the Financial – Investment Management industry, a group that includes 38 individual stocks and currently sits at #175 in the Zacks Industry Rank. Stocks in this group have lost about 18.5% so far this year, so CSWC is performing better this group in terms of year-to-date returns.
On the other hand, Sierra Bancorp belongs to the Banks – West industry. This 27-stock industry is currently ranked #86. The industry has moved -1.2% year to date.
Going forward, investors interested in Finance stocks should continue to pay close attention to Capital Southwest and Sierra Bancorp as they could maintain their solid performance.
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Capital Southwest Corporation (CSWC) : Free Stock Analysis Report