Is Cricut (CRCT) Stock Outpacing Its Business Services Peers This Year?

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 Cricut, Inc. (CRCT) 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.

Cricut, Inc. is a member of our Business Services group, which includes 254 different companies and currently sits at #5 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 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. Cricut, Inc. is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for CRCT's full-year earnings has moved 27.3% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that CRCT has returned about 3.2% since the start of the calendar year. In comparison, Business Services companies have returned an average of 0%. As we can see, Cricut, Inc. is performing better than its sector in the calendar year.

Another stock in the Business Services sector, Digi Power X Inc. (DGXX), has outperformed the sector so far this year. The stock's year-to-date return is 59.3%.

For Digi Power X Inc., the consensus EPS estimate for the current year has increased 69.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Cricut, Inc. belongs to the Technology Services industry, a group that includes 119 individual companies and currently sits at #84 in the Zacks Industry Rank. Stocks in this group have gained about 14.9% so far this year, so CRCT is slightly underperforming its industry this group in terms of year-to-date returns. Digi Power X Inc. is also part of the same industry.

Going forward, investors interested in Business Services stocks should continue to pay close attention to Cricut, Inc. and Digi Power X Inc. as they could maintain their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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