Is AppLovin (APP) Stock Outpacing Its Business Services Peers This Year?
The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has AppLovin (APP) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
AppLovin is a member of the Business Services sector. This group includes 318 individual stocks and currently holds a Zacks Sector Rank of #6. 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 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. AppLovin is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for APP's full-year earnings has moved 13.6% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, APP has gained about 247.6% so far this year. In comparison, Business Services companies have returned an average of 16.5%. This means that AppLovin is outperforming the sector as a whole this year.
Another stock in the Business Services sector, UiPath (PATH), has outperformed the sector so far this year. The stock's year-to-date return is 83.8%.
For UiPath, the consensus EPS estimate for the current year has increased 25.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, AppLovin belongs to the Technology Services industry, a group that includes 176 individual companies and currently sits at #91 in the Zacks Industry Rank. This group has gained an average of 39% so far this year, so APP is performing better in this area. UiPath is also part of the same industry.
Going forward, investors interested in Business Services stocks should continue to pay close attention to AppLovin and UiPath as they could maintain their solid performance.
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AppLovin Corporation (APP) : Free Stock Analysis Report
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