For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. CRA International (CRAI) 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.
CRA International is one of 262 individual stocks in the Business Services sector. Collectively, these companies sit at #6 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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. CRA International is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for CRAI's full-year earnings has moved 0.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, CRAI has returned 11.4% so far this year. At the same time, Business Services stocks have gained an average of 1.3%. This shows that CRA International is outperforming its peers so far this year.
Another Business Services stock, which has outperformed the sector so far this year, is Adeia (ADEA). The stock has returned 20.2% year-to-date.
The consensus estimate for Adeia's current year EPS has increased 4.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, CRA International is a member of the Consulting Services industry, which includes 13 individual companies and currently sits at #149 in the Zacks Industry Rank. On average, this group has lost an average of 18.2% so far this year, meaning that CRAI is performing better in terms of year-to-date returns.
On the other hand, Adeia belongs to the Technology Services industry. This 125-stock industry is currently ranked #77. The industry has moved +45.8% year to date.
CRA International and Adeia 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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Charles River Associates (CRAI): Free Stock Analysis Report Adeia Inc. (ADEA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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