For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Futu Holdings Limited Sponsored ADR (FUTU) 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? 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.
Futu Holdings Limited Sponsored ADR is one of 259 companies in the Business Services group. The Business Services group currently sits at #6 within 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 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. Futu Holdings Limited Sponsored ADR is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for FUTU's full-year earnings has moved 11.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that FUTU has returned about 132.8% since the start of the calendar year. Meanwhile, the Business Services sector has returned an average of -8.3% on a year-to-date basis. This shows that Futu Holdings Limited Sponsored ADR is outperforming its peers so far this year.
Another stock in the Business Services sector, Society Pass Incorporated (SOPA), has outperformed the sector so far this year. The stock's year-to-date return is 119.4%.
Over the past three months, Society Pass Incorporated's consensus EPS estimate for the current year has increased 59.6%. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Futu Holdings Limited Sponsored ADR belongs to the Technology Services industry, a group that includes 124 individual companies and currently sits at #66 in the Zacks Industry Rank. Stocks in this group have gained about 25.7% so far this year, so FUTU is performing better this group in terms of year-to-date returns. Society Pass Incorporated is also part of the same industry.
Investors interested in the Business Services sector may want to keep a close eye on Futu Holdings Limited Sponsored ADR and Society Pass Incorporated as they attempt to continue their solid performance.
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Futu Holdings Limited Sponsored ADR (FUTU): Free Stock Analysis Report Society Pass Incorporated (SOPA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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