Is ABM Industries (ABM) Outperforming Other Business Services Stocks This Year?
Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. 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? By taking a look at the stock's year-to-date performance in comparison to its Business Services peers, we might be able to answer that question.
ABM Industries is a member of the Business Services sector. This group includes 327 individual stocks and currently holds a Zacks Sector Rank of #8. 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader 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 0% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, ABM has moved about 12.8% on a year-to-date basis. Meanwhile, stocks in the Business Services group have lost about 24% on average. This means that ABM Industries is outperforming the sector as a whole this year.
ExlService Holdings (EXLS) is another Business Services stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 21.7%.
For ExlService Holdings, the consensus EPS estimate for the current year has increased 2.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, ABM Industries belongs to the Building Products - Maintenance Service industry, which includes 3 individual stocks and currently sits at #97 in the Zacks Industry Rank. On average, stocks in this group have gained 5.7% this year, meaning that ABM is performing better in terms of year-to-date returns.
On the other hand, ExlService Holdings belongs to the Outsourcing industry. This 14-stock industry is currently ranked #49. The industry has moved -4% year to date.
Investors interested in the Business Services sector may want to keep a close eye on ABM Industries and ExlService Holdings as they attempt to continue their solid performance.
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