The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Deluxe (DLX) 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.
Deluxe 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 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. Deluxe is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for DLX's full-year earnings has moved 13.5% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, DLX has gained about 20.3% so far this year. Meanwhile, stocks in the Business Services group have lost about 10% on average. This shows that Deluxe is outperforming its peers so far this year.
One other Business Services stock that has outperformed the sector so far this year is Exponent (EXPO). The stock is up 1.1% year-to-date.
Over the past three months, Exponent's consensus EPS estimate for the current year has increased 2.5%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Deluxe is a member of the Business - Office Products industry, which includes 2 individual companies and currently sits at #6 in the Zacks Industry Rank. This group has gained an average of 17.1% so far this year, so DLX is performing better in this area.
In contrast, Exponent falls under the Consulting Services industry. Currently, this industry has 13 stocks and is ranked #178. Since the beginning of the year, the industry has moved -18.3%.
Investors with an interest in Business Services stocks should continue to track Deluxe and Exponent. These stocks will be looking to continue their solid performance.
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Deluxe Corporation (DLX): Free Stock Analysis Report Exponent, Inc. (EXPO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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