The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Adeia (ADEA) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Adeia is one of 237 individual stocks in the Business Services sector. Collectively, these companies sit at #11 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 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. Adeia is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for ADEA's full-year earnings has moved 6.4% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, ADEA has returned 2.4% so far this year. Meanwhile, the Business Services sector has returned an average of -5.7% on a year-to-date basis. As we can see, Adeia is performing better than its sector in the calendar year.
One other Business Services stock that has outperformed the sector so far this year is Coherent (COHR). The stock is up 24.2% year-to-date.
Over the past three months, Coherent's consensus EPS estimate for the current year has increased 10.4%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Adeia belongs to the Technology Services industry, a group that includes 109 individual stocks and currently sits at #148 in the Zacks Industry Rank. On average, this group has lost an average of 5.9% so far this year, meaning that ADEA is performing better in terms of year-to-date returns. Coherent is also part of the same industry.
Adeia and Coherent 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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Adeia Inc. (ADEA): Free Stock Analysis Report Coherent Corp. (COHR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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