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 Adeia (ADEA) 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.
Adeia is a member of the Business Services sector. This group includes 237 individual stocks and currently holds a Zacks Sector Rank of #13. 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 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. Adeia is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for ADEA's full-year earnings has moved 6.4% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that ADEA has returned about 7.4% since the start of the calendar year. Meanwhile, the Business Services sector has returned an average of -8.1% on a year-to-date basis. As we can see, Adeia is performing better than its sector in the calendar year.
Another stock in the Business Services sector, Coherent (COHR), has outperformed the sector so far this year. The stock's year-to-date return is 26%.
In Coherent's case, the consensus EPS estimate for the current year increased 10.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Adeia is a member of the Technology Services industry, which includes 109 individual companies and currently sits at #155 in the Zacks Industry Rank. On average, this group has lost an average of 8.7% 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.
Going forward, investors interested in Business Services stocks should continue to pay close attention to Adeia and Coherent as they could maintain their solid performance.
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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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