Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Barrett Business Services (BBSI) 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question.
Barrett Business Services is a member of our Business Services group, which includes 253 different companies and currently sits at #7 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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. Barrett Business Services is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for BBSI's full-year earnings has moved 4% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, BBSI has gained about 12.1% so far this year. At the same time, Business Services stocks have gained an average of 0.5%. This means that Barrett Business Services is performing better than its sector in terms of year-to-date returns.
One other Business Services stock that has outperformed the sector so far this year is Bright Horizons Family Solutions (BFAM). The stock is up 9.2% year-to-date.
For Bright Horizons Family Solutions, the consensus EPS estimate for the current year has increased 4.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Barrett Business Services is a member of the Outsourcing industry, which includes 7 individual companies and currently sits at #68 in the Zacks Industry Rank. This group has lost an average of 5.6% so far this year, so BBSI is performing better in this area.
On the other hand, Bright Horizons Family Solutions belongs to the Business - Services industry. This 26-stock industry is currently ranked #66. The industry has moved +8% year to date.
Investors with an interest in Business Services stocks should continue to track Barrett Business Services and Bright Horizons Family Solutions. These stocks will be looking to continue their solid performance.
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Barrett Business Services, Inc. (BBSI): Free Stock Analysis Report Bright Horizons Family Solutions Inc. (BFAM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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