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For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Has EDENRED (EDNMY) been one of those stocks this year? 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.
EDENRED is one of 272 companies in the Business Services group. The Business Services group currently sits at #7 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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. EDENRED is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for EDNMY's full-year earnings has moved 10.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, EDNMY has moved about 15.3% on a year-to-date basis. In comparison, Business Services companies have returned an average of -2%. As we can see, EDENRED is performing better than its sector in the calendar year.
One other Business Services stock that has outperformed the sector so far this year is INTERTEK GP (IKTSY). The stock is up 2.6% year-to-date.
Over the past three months, INTERTEK GP's consensus EPS estimate for the current year has increased 2.8%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, EDENRED is a member of the Technology Services industry, which includes 131 individual companies and currently sits at #60 in the Zacks Industry Rank. On average, stocks in this group have lost 27.9% this year, meaning that EDNMY is performing better in terms of year-to-date returns.
INTERTEK GP, however, belongs to the Business - Information Services industry. Currently, this 10-stock industry is ranked #88. The industry has moved -10.6% so far this year.
Investors interested in the Business Services sector may want to keep a close eye on EDENRED and INTERTEK GP as they attempt to continue their solid performance.
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