The Business Services group has plenty of great stocks, but investors should always be looking for companies 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 238 individual stocks in the Business Services sector. Collectively, these companies sit at #14 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 is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. CRA International is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for CRAI's full-year earnings has moved 1.9% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that CRAI has returned about 6.9% since the start of the calendar year. In comparison, Business Services companies have returned an average of -8%. This means that CRA International 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 Digi Power X Inc. (DGXX). The stock is up 6.7% year-to-date.
Over the past three months, Digi Power X Inc.'s consensus EPS estimate for the current year has increased 64%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, CRA International belongs to the Consulting Services industry, which includes 13 individual stocks and currently sits at #111 in the Zacks Industry Rank. On average, this group has lost an average of 26.9% so far this year, meaning that CRAI is performing better in terms of year-to-date returns.
Digi Power X Inc., however, belongs to the Technology Services industry. Currently, this 110-stock industry is ranked #161. The industry has moved +19% so far this year.
CRA International and Digi Power X Inc. 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 Digi Power X Inc. (DGXX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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