The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Healthcare Services (HCSG) 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.
Healthcare Services is a member of the Business Services sector. This group includes 254 individual stocks and currently holds a Zacks Sector Rank of #6. 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 proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Healthcare Services is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for HCSG's full-year earnings has moved 4.8% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that HCSG has returned about 31.1% since the start of the calendar year. At the same time, Business Services stocks have gained an average of 0%. This shows that Healthcare Services is outperforming its peers so far this 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 47.8%.
The consensus estimate for Montrose Environmental's current year EPS has increased 200% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Healthcare Services belongs to the Business - Services industry, a group that includes 26 individual stocks and currently sits at #94 in the Zacks Industry Rank. On average, this group has gained an average of 8.4% so far this year, meaning that HCSG is performing better in terms of year-to-date returns.
On the other hand, Montrose Environmental belongs to the Waste Removal Services industry. This 22-stock industry is currently ranked #181. The industry has moved +11.6% year to date.
Investors interested in the Business Services sector may want to keep a close eye on Healthcare Services and Montrose Environmental as they attempt to continue their solid performance.
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Healthcare Services Group, Inc. (HCSG): 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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