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 Allot Communications (ALLT) 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.
Allot Communications is one of 260 companies in the Business Services group. The Business Services group currently sits at #3 within 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Allot Communications is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for ALLT's full-year earnings has moved 133.3% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, ALLT has moved about 74.1% on a year-to-date basis. Meanwhile, stocks in the Business Services group have gained about 2.6% on average. This means that Allot Communications is outperforming the sector as a whole this year.
Another Business Services stock, which has outperformed the sector so far this year, is Healthcare Services (HCSG). The stock has returned 19% year-to-date.
The consensus estimate for Healthcare Services' current year EPS has increased 5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Allot Communications belongs to the Technology Services industry, a group that includes 122 individual stocks and currently sits at #51 in the Zacks Industry Rank. On average, this group has gained an average of 8.9% so far this year, meaning that ALLT is performing better in terms of year-to-date returns.
On the other hand, Healthcare Services belongs to the Business - Services industry. This 26-stock industry is currently ranked #48. The industry has moved +17.9% year to date.
Investors interested in the Business Services sector may want to keep a close eye on Allot Communications and Healthcare Services as they attempt to continue their solid performance.
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Allot Ltd. (ALLT): Free Stock Analysis Report Healthcare Services Group, Inc. (HCSG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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