Is EXL Service (EXLS) 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. ExlService Holdings (EXLS) 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.
ExlService Holdings is one of 333 individual stocks in the Business Services sector. Collectively, these companies sit at #8 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. ExlService Holdings is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for EXLS' full-year earnings has moved 4.3% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, EXLS has moved about 26.5% on a year-to-date basis. Meanwhile, the Business Services sector has returned an average of -31.3% on a year-to-date basis. This means that ExlService Holdings is performing better than its sector in terms of year-to-date returns.
Another Business Services stock, which has outperformed the sector so far this year, is RCM Technologies, Inc. (RCMT). The stock has returned 151.5% year-to-date.
In RCM Technologies, Inc.'s case, the consensus EPS estimate for the current year increased 1.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, ExlService Holdings belongs to the Outsourcing industry, a group that includes 14 individual companies and currently sits at #71 in the Zacks Industry Rank. On average, this group has lost an average of 8.9% so far this year, meaning that EXLS is performing better in terms of year-to-date returns.
On the other hand, RCM Technologies, Inc. belongs to the Staffing Firms industry. This 18-stock industry is currently ranked #91. The industry has moved -20.8% year to date.
Going forward, investors interested in Business Services stocks should continue to pay close attention to ExlService Holdings and RCM Technologies, Inc. as they could maintain their solid performance.
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