Are Business Services Stocks Lagging Arq, Inc. (ARQ) This Year?
The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Arq, Inc. (ARQ) 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.
Arq, Inc. is one of 315 individual stocks in the Business Services sector. Collectively, these companies sit at #5 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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. Arq, Inc. is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for ARQ's full-year earnings has moved 11.8% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, ARQ has gained about 95% so far this year. At the same time, Business Services stocks have gained an average of 9.5%. This means that Arq, Inc. is outperforming the sector as a whole this year.
Another Business Services stock, which has outperformed the sector so far this year, is Envestnet (ENV). The stock has returned 10% year-to-date.
For Envestnet, the consensus EPS estimate for the current year has increased 10.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Arq, Inc. is a member of the Waste Removal Services industry, which includes 18 individual companies and currently sits at #151 in the Zacks Industry Rank. On average, stocks in this group have gained 14.7% this year, meaning that ARQ is performing better in terms of year-to-date returns.
On the other hand, Envestnet belongs to the Financial Transaction Services industry. This 39-stock industry is currently ranked #41. The industry has moved +10% year to date.
Going forward, investors interested in Business Services stocks should continue to pay close attention to Arq, Inc. and Envestnet as they could maintain their solid performance.
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