For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Futu Holdings Limited Sponsored ADR (FUTU) 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? 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.
Futu Holdings Limited Sponsored ADR is a member of the Business Services sector. This group includes 259 individual stocks and currently holds a Zacks Sector Rank of #2. 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 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. Futu Holdings Limited Sponsored ADR is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for FUTU's full-year earnings has moved 2.7% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, FUTU has gained about 83.7% so far this year. In comparison, Business Services companies have returned an average of 1.8%. This shows that Futu Holdings Limited Sponsored ADR is outperforming its peers so far this year.
One other Business Services stock that has outperformed the sector so far this year is INTERTEK GP (IKTSY). The stock is up 11.7% year-to-date.
The consensus estimate for INTERTEK GP's current year EPS has increased 3% 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 122 individual stocks and currently sits at #61 in the Zacks Industry Rank. Stocks in this group have gained about 9.8% so far this year, so FUTU is performing better this group in terms of year-to-date returns.
In contrast, INTERTEK GP falls under the Business - Information Services industry. Currently, this industry has 9 stocks and is ranked #24. Since the beginning of the year, the industry has moved -5.3%.
Going forward, investors interested in Business Services stocks should continue to pay close attention to Futu Holdings Limited Sponsored ADR and INTERTEK GP as they could maintain their solid performance.
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Futu Holdings Limited Sponsored ADR (FUTU): Free Stock Analysis Report INTERTEK GP (IKTSY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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