Is Paychex (PAYX) Stock Outpacing Its Business Services Peers This Year?
Investors focused on the Business Services space have likely heard of Paychex (PAYX), but is the stock performing well in comparison to the rest of its sector peers? One simple way to answer this question is to take a look at the year-to-date performance of PAYX and the rest of the Business Services group's stocks.
Paychex is one of 193 companies in the Business Services group. The Business Services group currently sits at #6 within 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 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. PAYX is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for PAYX's full-year earnings has moved 0.68% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, PAYX has gained about 29.58% so far this year. At the same time, Business Services stocks have gained an average of 25.88%. This means that Paychex is performing better than its sector in terms of year-to-date returns.
Looking more specifically, PAYX belongs to the Outsourcing industry, a group that includes 15 individual stocks and currently sits at #94 in the Zacks Industry Rank. On average, stocks in this group have gained 26.46% this year, meaning that PAYX is performing better in terms of year-to-date returns.
Investors with an interest in Business Services stocks should continue to track PAYX. The stock will be looking to continue its solid performance.
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