Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Is Allot Communications (ALLT) one of those stocks right now? 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.
Allot Communications is one of 271 companies in the Business Services group. The Business Services group currently sits at #4 within 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 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. Allot Communications is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for ALLT's full-year earnings has moved 57.1% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that ALLT has returned about 1.7% since the start of the calendar year. Meanwhile, the Business Services sector has returned an average of -3.4% on a year-to-date basis. This means that Allot Communications is outperforming the sector as a whole this year.
Another stock in the Business Services sector, Sims Metal Management Ltd. (SMSMY), has outperformed the sector so far this year. The stock's year-to-date return is 21.9%.
Over the past three months, Sims Metal Management Ltd.'s consensus EPS estimate for the current year has increased 23%. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Allot Communications belongs to the Technology Services industry, a group that includes 131 individual companies and currently sits at #61 in the Zacks Industry Rank. On average, stocks in this group have lost 16.7% this year, meaning that ALLT is performing better in terms of year-to-date returns.
In contrast, Sims Metal Management Ltd. falls under the Waste Removal Services industry. Currently, this industry has 23 stocks and is ranked #165. Since the beginning of the year, the industry has moved +5.6%.
Allot Communications and Sims Metal Management Ltd. 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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Allot Ltd. (ALLT): Free Stock Analysis Report Sims Metal Management Ltd. (SMSMY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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