The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. SPX Technologies (SPXC) 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.
SPX Technologies is one of 259 companies in the Business Services group. The Business Services group currently sits at #3 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. SPX Technologies is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for SPXC's full-year earnings has moved 3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, SPXC has returned 20.4% so far this year. In comparison, Business Services companies have returned an average of 1.6%. As we can see, SPX Technologies is performing better than its sector in the calendar year.
Another stock in the Business Services sector, Montrose Environmental (MEG), has outperformed the sector so far this year. The stock's year-to-date return is 19.2%.
Over the past three months, Montrose Environmental's consensus EPS estimate for the current year has increased 145%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, SPX Technologies belongs to the Technology Services industry, which includes 122 individual stocks and currently sits at #68 in the Zacks Industry Rank. This group has gained an average of 10.7% so far this year, so SPXC is performing better in this area.
In contrast, Montrose Environmental falls under the Waste Removal Services industry. Currently, this industry has 22 stocks and is ranked #148. Since the beginning of the year, the industry has moved +8.3%.
Going forward, investors interested in Business Services stocks should continue to pay close attention to SPX Technologies and Montrose Environmental as they could maintain their solid performance.
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SPX Technologies, Inc. (SPXC): Free Stock Analysis Report Montrose Environmental Group, Inc. (MEG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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