The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Digi Power X Inc. (DGXX) 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? Let's take a closer look at the stock's year-to-date performance to find out.
Digi Power X Inc. is a member of the Business Services sector. This group includes 255 individual stocks and currently holds a Zacks Sector Rank of #7. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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. Digi Power X Inc. is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for DGXX's full-year earnings has moved 10.6% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, DGXX has moved about 105.3% on a year-to-date basis. Meanwhile, the Business Services sector has returned an average of -1.3% on a year-to-date basis. This means that Digi Power X Inc. is outperforming the sector as a whole this year.
Another Business Services stock, which has outperformed the sector so far this year, is Evertec (EVTC). The stock has returned 0.2% year-to-date.
The consensus estimate for Evertec's current year EPS has increased 6.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Digi Power X Inc. belongs to the Technology Services industry, a group that includes 119 individual companies and currently sits at #99 in the Zacks Industry Rank. This group has gained an average of 12.8% so far this year, so DGXX is performing better in this area.
On the other hand, Evertec belongs to the Financial Transaction Services industry. This 35-stock industry is currently ranked #100. The industry has moved +0.7% year to date.
Investors interested in the Business Services sector may want to keep a close eye on Digi Power X Inc. and Evertec as they attempt to continue their solid performance.
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Digi Power X Inc. (DGXX): Free Stock Analysis Report Evertec, Inc. (EVTC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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