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 Adecco SA (AHEXY) 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.
Adecco SA is a member of our Business Services group, which includes 255 different companies and currently sits at #7 in 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. Adecco SA is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for AHEXY's full-year earnings has moved 4.2% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, AHEXY has returned 26.3% so far this year. In comparison, Business Services companies have returned an average of -1%. This means that Adecco SA is outperforming the sector as a whole this year.
Another stock in the Business Services sector, MasterCard (MA), has outperformed the sector so far this year. The stock's year-to-date return is 8.1%.
For MasterCard, the consensus EPS estimate for the current year has increased 2.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Adecco SA is a member of the Outsourcing industry, which includes 7 individual companies and currently sits at #167 in the Zacks Industry Rank. On average, this group has lost an average of 14.4% so far this year, meaning that AHEXY is performing better in terms of year-to-date returns.
MasterCard, however, belongs to the Financial Transaction Services industry. Currently, this 35-stock industry is ranked #97. The industry has moved +1.7% so far this year.
Adecco SA and MasterCard could continue their solid performance, so investors interested in Business Services stocks should continue to pay close attention to these stocks.
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Adecco SA (AHEXY): Free Stock Analysis Report Mastercard Incorporated (MA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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