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

For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. GDS Holdings (GDS) 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? Let's take a closer look at the stock's year-to-date performance to find out.

GDS Holdings is a member of the Business Services sector. This group includes 233 individual stocks and currently holds a Zacks Sector Rank of #11. 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. GDS Holdings is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for GDS' full-year earnings has moved 446% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, GDS has gained about 22.5% so far this year. Meanwhile, stocks in the Business Services group have lost about 10.6% on average. As we can see, GDS Holdings is performing better than its sector in the calendar year.

Enpro (NPO) is another Business Services stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 44.9%.

The consensus estimate for Enpro's current year EPS has increased 4.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, GDS Holdings is a member of the Technology Services industry, which includes 111 individual companies and currently sits at #185 in the Zacks Industry Rank. On average, stocks in this group have lost 1.5% this year, meaning that GDS is performing better in terms of year-to-date returns. Enpro is also part of the same industry.

GDS Holdings and Enpro 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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This article originally published on Zacks Investment Research (zacks.com).

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