Banco Macro (NYSE: BMA) has significantly outperformed the finance sector this year, yielding an 18.5% return, far exceeding the sector's average of 1.8%. The bank's strong performance has placed it in the commendable position of #12 within the finance group of 848 entities, according to the Zacks Sector Rank.
The Zacks Consensus Estimate for BMA's yearly earnings has witnessed a 6.7% increase over the past three months, indicating improved analyst sentiment and a promising earnings outlook. The bank's robust performance and favorable earnings estimate revisions have led to its current "Buy" status (#2) in the Zacks Rank model, suggesting potential market outperformance in the coming one to three months.
BMA is part of the Banks - Foreign industry, a group comprised of 63 stocks. Its performance this year has resulted in an average year-to-date gain of 6.5%, surpassing its industry peers. It currently holds position #188 in the Zacks Industry Rank.
Another notable performer within the finance sector is Capital Southwest (NASDAQ: NASDAQ:CSWC), which has seen a 25% return this year and a consensus EPS estimate that has risen by 2.7%.
InvestingPro Insights
Drawing on real-time data from InvestingPro, Banco Macro (BMA) has a market capitalization of $3210M USD and a P/E ratio of 14.58, which is relatively low compared to its near-term earnings growth. Furthermore, the bank's revenue growth for the last twelve months as of Q2 2023 stands at a robust 48.35%.
Looking at the InvestingPro Tips, BMA is recognized for its high earnings quality, with free cash flow exceeding net income. This, along with strong earnings, should allow the bank to continue its dividend payments. It's also worth noting that BMA is a prominent player in the Banks industry, and analysts anticipate sales growth in the current year. However, it's important to consider that the stock generally trades with high price volatility.
For those interested in further insights, InvestingPro offers an additional 15 tips related to BMA. These tips, along with many others, are part of the InvestingPro product designed to help investors make informed decisions.
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