The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Liquidity Services (LQDT) 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.
Liquidity Services is a member of the Business Services sector. This group includes 237 individual stocks and currently holds a Zacks Sector Rank of #14. 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. Liquidity Services is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for LQDT's full-year earnings has moved 5.2% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, LQDT has gained about 1.4% so far this year. Meanwhile, stocks in the Business Services group have lost about 11% on average. This means that Liquidity Services is outperforming the sector as a whole this year.
Another Business Services stock, which has outperformed the sector so far this year, is Remitly Global, Inc. (RELY). The stock has returned 18.1% year-to-date.
The consensus estimate for Remitly Global, Inc.'s current year EPS has increased 50% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Liquidity Services belongs to the Auction and Valuation Services industry, a group that includes 3 individual companies and currently sits at #15 in the Zacks Industry Rank. On average, stocks in this group have lost 10.1% this year, meaning that LQDT is performing better in terms of year-to-date returns.
On the other hand, Remitly Global, Inc. belongs to the Financial Transaction Services industry. This 37-stock industry is currently ranked #147. The industry has moved -13.2% year to date.
Going forward, investors interested in Business Services stocks should continue to pay close attention to Liquidity Services and Remitly Global, Inc. as they could maintain their solid performance.
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Liquidity Services, Inc. (LQDT): Free Stock Analysis Report Remitly Global, Inc. (RELY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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