For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Aramark (ARMK) one of those stocks right now? 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.
Aramark is one of 258 companies in the Business Services group. The Business Services group currently sits at #5 within the Zacks Sector Rank. 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Aramark is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for ARMK's full-year earnings has moved 1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, ARMK has gained about 18.3% so far this year. Meanwhile, stocks in the Business Services group have gained about 2.2% on average. This means that Aramark is outperforming the sector as a whole this year.
Another Business Services stock, which has outperformed the sector so far this year, is Cipher Mining Inc. (CIFR). The stock has returned 44% year-to-date.
The consensus estimate for Cipher Mining Inc.'s current year EPS has increased 8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Aramark belongs to the Business - Services industry, a group that includes 26 individual stocks and currently sits at #90 in the Zacks Industry Rank. This group has gained an average of 16.7% so far this year, so ARMK is performing better in this area.
Cipher Mining Inc., however, belongs to the Technology Services industry. Currently, this 122-stock industry is ranked #82. The industry has moved +13.3% so far this year.
Going forward, investors interested in Business Services stocks should continue to pay close attention to Aramark and Cipher Mining Inc. as they could maintain their solid performance.
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Aramark (ARMK): Free Stock Analysis Report Cipher Mining Inc. (CIFR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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