Is NOV (NOV) 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. Nov Inc. (NOV) 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question.
Nov Inc. is a member of the Business Services sector. This group includes 333 individual stocks and currently holds a Zacks Sector Rank of #9. 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 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. Nov Inc. is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for NOV's full-year earnings has moved 90.8% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, NOV has returned 65.6% so far this year. At the same time, Business Services stocks have lost an average of 30.1%. This means that Nov Inc. is outperforming the sector as a whole this year.
One other Business Services stock that has outperformed the sector so far this year is Quest Resource (QRHC). The stock is up 22.8% year-to-date.
In Quest Resource's case, the consensus EPS estimate for the current year increased 77.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Nov Inc. belongs to the Technology Services industry, which includes 189 individual stocks and currently sits at #139 in the Zacks Industry Rank. Stocks in this group have lost about 50.1% so far this year, so NOV is performing better this group in terms of year-to-date returns.
On the other hand, Quest Resource belongs to the Waste Removal Services industry. This 16-stock industry is currently ranked #46. The industry has moved -12.1% year to date.
Investors with an interest in Business Services stocks should continue to track Nov Inc. and Quest Resource. These stocks will be looking to continue their solid performance.
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