The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has AppLovin (APP) 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.
AppLovin is one of 262 individual stocks in the Business Services sector. Collectively, these companies sit at #3 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. AppLovin is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for APP's full-year earnings has moved 9.2% 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, APP has returned 82.2% so far this year. Meanwhile, the Business Services sector has returned an average of -2.3% on a year-to-date basis. This means that AppLovin is performing better than its sector in terms of year-to-date returns.
Another Business Services stock, which has outperformed the sector so far this year, is Peraso (PRSO). The stock has returned 46.6% year-to-date.
In Peraso's case, the consensus EPS estimate for the current year increased 46.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, AppLovin belongs to the Technology Services industry, a group that includes 125 individual stocks and currently sits at #56 in the Zacks Industry Rank. On average, stocks in this group have gained 39% this year, meaning that APP is performing better in terms of year-to-date returns. Peraso is also part of the same industry.
Investors with an interest in Business Services stocks should continue to track AppLovin and Peraso. These stocks will be looking to continue their solid performance.
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AppLovin Corporation (APP): Free Stock Analysis Report Peraso Inc. (PRSO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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