Are Conglomerates Stocks Lagging Sumitomo (SSUMY) This Year?

Investors interested in Conglomerates stocks should always be looking to find the best-performing companies in the group. Is Sumitomo Corp. (SSUMY) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Conglomerates peers, we might be able to answer that question.

Sumitomo Corp. is a member of the Conglomerates sector. This group includes 15 individual stocks and currently holds a Zacks Sector Rank of #8. 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. Sumitomo Corp. is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for SSUMY's full-year earnings has moved 0.7% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, SSUMY has moved about 25.2% on a year-to-date basis. Meanwhile, stocks in the Conglomerates group have gained about 15.3% on average. This shows that Sumitomo Corp. is outperforming its peers so far this year.

Another Conglomerates stock, which has outperformed the sector so far this year, is Swire Pacific (SWRAY). The stock has returned 26.9% year-to-date.

For Swire Pacific, the consensus EPS estimate for the current year has increased 3.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Sumitomo Corp. is a member of the Diversified Operations industry, which includes 15 individual companies and currently sits at #90 in the Zacks Industry Rank. On average, this group has gained an average of 15.3% so far this year, meaning that SSUMY is performing better in terms of year-to-date returns. Swire Pacific is also part of the same industry.

Investors interested in the Conglomerates sector may want to keep a close eye on Sumitomo Corp. and Swire Pacific as they attempt to continue their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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Source Zacks-com