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 Broadridge Financial Solutions (BR) been one of those stocks this year? 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.
Broadridge Financial Solutions is one of 272 individual stocks in the Business Services sector. Collectively, these companies sit at #7 in the Zacks Sector Rank. 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 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. Broadridge Financial Solutions is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for BR's full-year earnings has moved 0.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that BR has returned about 2.7% since the start of the calendar year. In comparison, Business Services companies have returned an average of -3.9%. This shows that Broadridge Financial Solutions is outperforming its peers so far this year.
Another stock in the Business Services sector, Fiserv (FI), has outperformed the sector so far this year. The stock's year-to-date return is 2.4%.
In Fiserv's case, the consensus EPS estimate for the current year increased 0.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Broadridge Financial Solutions is a member of the Outsourcing industry, which includes 10 individual companies and currently sits at #217 in the Zacks Industry Rank. On average, stocks in this group have lost 1.4% this year, meaning that BR is performing better in terms of year-to-date returns.
Fiserv, however, belongs to the Financial Transaction Services industry. Currently, this 36-stock industry is ranked #88. The industry has moved -1.5% so far this year.
Broadridge Financial Solutions and Fiserv 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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Broadridge Financial Solutions, Inc. (BR): Free Stock Analysis Report Fiserv, Inc. (FI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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