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Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Cintas (CTAS) 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.
Cintas is one of 289 individual stocks in the Business Services sector. Collectively, these companies sit at #7 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. Cintas is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for CTAS' full-year earnings has moved 1.7% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, CTAS has returned 11.2% so far this year. Meanwhile, stocks in the Business Services group have lost about 0.5% on average. This shows that Cintas is outperforming its peers so far this year.
One other Business Services stock that has outperformed the sector so far this year is Gorilla Technology Group Inc. (GRRR). The stock is up 38.7% year-to-date.
In Gorilla Technology Group Inc.'s case, the consensus EPS estimate for the current year increased 12% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Cintas belongs to the Business - Services industry, a group that includes 25 individual companies and currently sits at #136 in the Zacks Industry Rank. Stocks in this group have gained about 4.6% so far this year, so CTAS is performing better this group in terms of year-to-date returns.
On the other hand, Gorilla Technology Group Inc. belongs to the Technology Services industry. This 151-stock industry is currently ranked #52. The industry has moved -12.8% year to date.
Cintas and Gorilla Technology Group Inc. 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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