For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. HNI (HNI) 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.
HNI is a member of our Business Services group, which includes 237 different companies and currently sits at #14 in 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 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. HNI is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for HNI's full-year earnings has moved 0.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, HNI has returned 7% so far this year. Meanwhile, stocks in the Business Services group have lost about 7.2% on average. This shows that HNI is outperforming its peers so far this year.
One other Business Services stock that has outperformed the sector so far this year is Sezzle Inc. (SEZL). The stock is up 14.9% year-to-date.
The consensus estimate for Sezzle Inc.'s current year EPS has increased 7.1% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, HNI belongs to the Business - Office Products industry, which includes 2 individual stocks and currently sits at #7 in the Zacks Industry Rank. This group has gained an average of 12.8% so far this year, so HNI is slightly underperforming its industry in this area.
On the other hand, Sezzle Inc. belongs to the Financial Transaction Services industry. This 37-stock industry is currently ranked #153. The industry has moved -9.8% year to date.
Investors with an interest in Business Services stocks should continue to track HNI and Sezzle Inc.. These stocks will be looking to continue their solid performance.
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HNI Corporation (HNI): Free Stock Analysis Report Sezzle Inc. (SEZL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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