Is BGSF (BGSF) Stock Outpacing Its Business Services Peers This Year?

The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. BGSF (BGSF) 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.

BGSF is a member of our Business Services group, which includes 271 different companies and currently sits at #3 in the Zacks Sector Rank. 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 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. BGSF is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for BGSF's full-year earnings has moved 366.7% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, BGSF has returned 5% so far this year. Meanwhile, the Business Services sector has returned an average of 0.3% on a year-to-date basis. This means that BGSF is outperforming the sector as a whole this year.

One other Business Services stock that has outperformed the sector so far this year is FirstCash Holdings (FCFS). The stock is up 24% year-to-date.

For FirstCash Holdings, the consensus EPS estimate for the current year has increased 2.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, BGSF belongs to the Business - Services industry, a group that includes 26 individual companies and currently sits at #70 in the Zacks Industry Rank. This group has gained an average of 16.3% so far this year, so BGSF is slightly underperforming its industry in this area.

FirstCash Holdings, however, belongs to the Financial Transaction Services industry. Currently, this 35-stock industry is ranked #57. The industry has moved +0.4% so far this year.

Investors interested in the Business Services sector may want to keep a close eye on BGSF and FirstCash Holdings as they attempt to continue their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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