Has Kelly Services (KELYA) Outpaced Other Business Services Stocks 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 Kelly Services (KELYA) been one of those stocks this year? 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.
Kelly Services is one of 330 individual stocks in the Business Services sector. Collectively, these companies sit at #7 in the Zacks Sector Rank. 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. Kelly Services is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for KELYA's full-year earnings has moved 3.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, KELYA has moved about 14.9% on a year-to-date basis. In comparison, Business Services companies have returned an average of -26.7%. As we can see, Kelly Services is performing better than its sector in the calendar year.
One other Business Services stock that has outperformed the sector so far this year is Wex (WEX). The stock is up 12.6% year-to-date.
In Wex's case, the consensus EPS estimate for the current year increased 9.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Kelly Services belongs to the Staffing Firms industry, a group that includes 18 individual companies and currently sits at #159 in the Zacks Industry Rank. On average, this group has lost an average of 20.6% so far this year, meaning that KELYA is performing better in terms of year-to-date returns.
On the other hand, Wex belongs to the Financial Transaction Services industry. This 40-stock industry is currently ranked #166. The industry has moved -12.4% year to date.
Investors with an interest in Business Services stocks should continue to track Kelly Services and Wex. These stocks will be looking to continue their solid performance.
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