The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. ABM Industries (ABM) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.
ABM Industries is one of 290 companies in the Business Services group. The Business Services group currently sits at #9 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. ABM Industries is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for ABM's full-year earnings has moved 1.5% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, ABM has gained about 2.3% so far this year. Meanwhile, the Business Services sector has returned an average of 2.1% on a year-to-date basis. This means that ABM Industries is performing better than its sector in terms of year-to-date returns.
One other Business Services stock that has outperformed the sector so far this year is Evertec (EVTC). The stock is up 9.6% year-to-date.
In Evertec's case, the consensus EPS estimate for the current year increased 4.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, ABM Industries belongs to the Business - Services industry, which includes 25 individual stocks and currently sits at #143 in the Zacks Industry Rank. Stocks in this group have gained about 5.5% so far this year, so ABM is slightly underperforming its industry this group in terms of year-to-date returns.
On the other hand, Evertec belongs to the Financial Transaction Services industry. This 37-stock industry is currently ranked #80. The industry has moved +5.9% year to date.
Investors with an interest in Business Services stocks should continue to track ABM Industries and Evertec. These stocks will be looking to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
