U.S. Markets close in 3 hrs 13 mins
  • S&P 500

    3,628.04
    -7.37 (-0.20%)
     
  • Dow 30

    29,881.24
    -165.00 (-0.55%)
     
  • Nasdaq

    12,072.74
    +35.96 (+0.30%)
     
  • Russell 2000

    1,844.35
    -9.18 (-0.50%)
     
  • Crude Oil

    45.63
    +0.72 (+1.60%)
     
  • Gold

    1,809.00
    +4.40 (+0.24%)
     
  • Silver

    23.44
    +0.14 (+0.60%)
     
  • EUR/USD

    1.1923
    +0.0027 (+0.2265%)
     
  • 10-Yr Bond

    0.8670
    -0.0150 (-1.70%)
     
  • Vix

    21.75
    +0.11 (+0.51%)
     
  • GBP/USD

    1.3376
    +0.0018 (+0.1324%)
     
  • USD/JPY

    104.3490
    -0.1310 (-0.1254%)
     
  • BTC-USD

    18,930.68
    -335.96 (-1.74%)
     
  • CMC Crypto 200

    375.72
    +5.20 (+1.40%)
     
  • FTSE 100

    6,391.09
    -41.08 (-0.64%)
     
  • Nikkei 225

    26,296.86
    +131.27 (+0.50%)
     

5 Business Services Stocks That Gained More Than 50% in 2019

Sanjana Goswami

The Zacks Business Services sector accounts for the lion’s share of the U.S. GDP and has performed well compared with the benchmark index year to date. The sector has recorded a year-to-date rally of 31.2%, outperforming 26.1% growth of the Zacks S&P 500 composite.

 

Companies in the Zacks Business Services sector offer a wide array of services such as staffing, consulting, advertising and marketing, outsourcing, technology, financial transaction, waste removal, business information, and auction and valuation. Given its widely diversified nature, the outlook of the business services sector is highly dependent on the health of the broader economy, which is currently stable.

Evidently, per the “second” estimate released by the Bureau of Economic Analysis (BEA) on Nov 27, GDP grew at an annualized rate of 2.1% in the third quarter of 2019, higher than 2% growth in second-quarter 2019. The economy witnessed average job addition of 180,000 per month so far in 2019, per the data released by the U.S. Bureau of Labor Statistics on Dec 6.

Both manufacturing and non-manufacturing activities remained healthy, keeping demand for business services in good shape. Notably, the interim trade deal between the United States and China, wherein the former agreed to reduce some existing tariffs and cancel the pre-scheduled Dec 15 tariffs, can drive manufacturing activities in the United States. The recent upbeat reading on U.S. factory production is an added positive for the sector.

Moreover, it carries an impressive Zacks Sector Rank. In view of the positives, it will be a prudent decision to buy stocks with sound fundamentals from the space.

5 Business Services Stocks Worth Investing In

With the help of the Zacks Stock Screener, we have zeroed in on five promising stocks from the business services sector, which have gained more than 50% in 2019, have a favorable Zacks Rank #1 (Strong Buy) or 2 (Buy) and have market capitalization of more than $1 billion. You can see the complete list of today’s Zacks #1 Rank stocks here.

These stocks also have a VGM Score of A or B, a solid expected earnings growth rate for 2019 and have witnessed upward earnings estimate revisions in the past 60 days.

Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 or 2 offer the best investment opportunities. Thus, the selected companies appear to be compelling investment propositions at the moment.

Everi Holdings EVRI: The stock of this Nevada-based provider of technology solutions for the casino gaming industry, has gained more than 100% year to date. Currently, it carries a Zacks Rank #2 and has a VGM Score of A. It has a market capitalization of $1.15 billion.

 

The company’s expected earnings growth rate for 2019 is more than 100%. The Zacks Consensus Estimate for 2019 has improved 20.7% in the past 60 days.

FTI Consulting FCN: The stock of this Washington-based provider of business advisory services, has gained 67.6% year to date. Currently, it sports a Zacks Rank #1 and has a VGM Score of B. It has a market capitalization of $4.20 billion.

 

The company’s expected earnings growth rate for 2019 is 47.8%. The Zacks Consensus Estimate for 2019 has improved 9.1% in the past 60 days.

Cardtronics CATM: The stock of this Texas-based provider of automated consumer financial services has gained 62.9% year to date. Currently, it sports a Zacks Rank #1 and has a VGM Score of B. It has a market capitalization of $1.88 billion.

 

The company’s expected earnings growth rate for 2019 is 12.2%. The Zacks Consensus Estimate for 2019 has improved 3.4% in the past 60 days.

Knoll KNL: This Pennsylvania-based stock designs, manufactures, markets, and sells commercial and residential furniture, accessories, and has gained 60% year to date. Currently, it holds a Zacks Rank #2 and has a VGM Score of A. It has a market capitalization of $1.38 billion.

 

The company’s expected earnings growth rate for 2019 is 13.5%. The Zacks Consensus Estimate for 2019 has improved 2.9% in the past 60 days.

TransUnion TRU: The stock of this Illinois-based provider of risk and information solutions, has gained 50.2% year to date. Currently, it carries a Zacks Rank #2 and has a VGM Score of B. It has a market capitalization of $15.94 billion.

 

The company’s expected earnings growth rate for 2019 is 10.8%. The Zacks Consensus Estimate for 2019 has improved 2.6% in the past 60 days.

Zacks Top 10 Stocks for 2020

In addition to the stocks discussed above, would you like to know about our 10 top tickers for the entirety of 2020?

These 10 are painstakingly hand-picked from over 4,000 companies covered by the Zacks Rank. They are our primary picks to buy and hold.

Start Your Access to the New Zacks Top 10 Stocks >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Everi Holdings Inc. (EVRI) : Free Stock Analysis Report
 
Cardtronics PLC (CATM) : Free Stock Analysis Report
 
TransUnion (TRU) : Free Stock Analysis Report
 
FTI Consulting, Inc. (FCN) : Free Stock Analysis Report
 
Knoll, Inc. (KNL) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.