Is Futu Holdings (FUTU) Stock Outpacing Its Business Services Peers This Year?

·2 min read

For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Futu Holdings Limited Sponsored ADR (FUTU) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

Futu Holdings Limited Sponsored ADR is one of 332 individual stocks in the Business Services sector. Collectively, these companies sit at #11 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Futu Holdings Limited Sponsored ADR is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for FUTU's full-year earnings has moved 10.1% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, FUTU has returned 49.5% so far this year. Meanwhile, stocks in the Business Services group have lost about 31.3% on average. As we can see, Futu Holdings Limited Sponsored ADR is performing better than its sector in the calendar year.

Another Business Services stock, which has outperformed the sector so far this year, is Gartner (IT). The stock has returned 1.4% year-to-date.

For Gartner, the consensus EPS estimate for the current year has increased 11.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Futu Holdings Limited Sponsored ADR belongs to the Technology Services industry, which includes 187 individual stocks and currently sits at #142 in the Zacks Industry Rank. On average, stocks in this group have lost 51.1% this year, meaning that FUTU is performing better in terms of year-to-date returns.

On the other hand, Gartner belongs to the Consulting Services industry. This 15-stock industry is currently ranked #19. The industry has moved -31.4% year to date.

Futu Holdings Limited Sponsored ADR and Gartner could continue their solid performance, so investors interested in Business Services stocks should continue to pay close attention to these stocks.

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