Is ABM Industries (ABM) Stock Outpacing Its Business Services Peers This Year?
For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Is ABM Industries (ABM) one of those stocks right now? 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 320 individual stocks and currently holds a Zacks Sector Rank of #11. 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 proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics 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 5.4% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, ABM has moved about 18.9% on a year-to-date basis. At the same time, Business Services stocks have lost an average of 14.9%. This shows that ABM Industries is outperforming its peers so far this year.
Another Business Services stock, which has outperformed the sector so far this year, is Aterian (ATER). The stock has returned 37.5% year-to-date.
Over the past three months, Aterian's consensus EPS estimate for the current year has increased 26%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, ABM Industries is a member of the Building Products - Maintenance Service industry, which includes 3 individual companies and currently sits at #104 in the Zacks Industry Rank. Stocks in this group have gained about 4.2% so far this year, so ABM is performing better this group in terms of year-to-date returns.
Aterian, however, belongs to the Technology Services industry. Currently, this 169-stock industry is ranked #164. The industry has moved -27.2% so far this year.
Investors interested in the Business Services sector may want to keep a close eye on ABM Industries and Aterian as they attempt to continue their solid performance.
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