For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Adecco SA (AHEXY) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Adecco SA is one of 238 companies in the Business Services group. The Business Services group currently sits at #14 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Adecco SA is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for AHEXY's full-year earnings has moved 0.3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, AHEXY has returned 0.7% so far this year. In comparison, Business Services companies have returned an average of -13.7%. This shows that Adecco SA is outperforming its peers so far this year.
Another Business Services stock, which has outperformed the sector so far this year, is APi (APG). The stock has returned 8.7% year-to-date.
The consensus estimate for APi's current year EPS has increased 0.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Adecco SA belongs to the Outsourcing industry, a group that includes 5 individual companies and currently sits at #97 in the Zacks Industry Rank. On average, stocks in this group have lost 31.9% this year, meaning that AHEXY is performing better in terms of year-to-date returns.
On the other hand, APi belongs to the Business - Services industry. This 23-stock industry is currently ranked #170. The industry has moved -17.3% year to date.
Adecco SA and APi 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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Adecco SA (AHEXY): Free Stock Analysis Report APi Group Corporation (APG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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