Are Finance Stocks Lagging Robinhood Markets (HOOD) This Year?

Zacks
18 Oct 2024

The Finance group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Robinhood Markets, Inc. (HOOD) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Robinhood Markets, Inc. is one of 871 individual stocks in the Finance sector. Collectively, these companies sit at #5 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Robinhood Markets, Inc. is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for HOOD's full-year earnings has moved 36.5% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, HOOD has gained about 106.6% so far this year. In comparison, Finance companies have returned an average of 21.4%. This means that Robinhood Markets, Inc. is performing better than its sector in terms of year-to-date returns.

One other Finance stock that has outperformed the sector so far this year is AerCap (AER). The stock is up 31.8% year-to-date.

Over the past three months, AerCap's consensus EPS estimate for the current year has increased 6.8%. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Robinhood Markets, Inc. belongs to the Financial - Investment Bank industry, a group that includes 15 individual stocks and currently sits at #59 in the Zacks Industry Rank. This group has gained an average of 5.6% so far this year, so HOOD is performing better in this area.

AerCap, however, belongs to the Financial - Leasing Companies industry. Currently, this 3-stock industry is ranked #193. The industry has moved +21.4% so far this year.

Investors with an interest in Finance stocks should continue to track Robinhood Markets, Inc. and AerCap. These stocks will be looking to continue their solid performance.

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