For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. APi (APG) 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.
APi is a member of the Business Services sector. This group includes 248 individual stocks and currently holds a Zacks Sector Rank of #10. 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. APi is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for APG's full-year earnings has moved 0.8% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, APG has gained about 0.2% so far this year. Meanwhile, stocks in the Business Services group have lost about 13.2% on average. This means that APi is performing better than its sector in terms of year-to-date returns.
One other Business Services stock that has outperformed the sector so far this year is Clean Harbors (CLH). The stock is up 33.6% year-to-date.
Over the past three months, Clean Harbors' consensus EPS estimate for the current year has increased 14.5%. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, APi belongs to the Business - Services industry, a group that includes 20 individual companies and currently sits at #96 in the Zacks Industry Rank. On average, stocks in this group have lost 19.2% this year, meaning that APG is performing better in terms of year-to-date returns.
In contrast, Clean Harbors falls under the Waste Removal Services industry. Currently, this industry has 23 stocks and is ranked #85. Since the beginning of the year, the industry has moved -9.6%.
Going forward, investors interested in Business Services stocks should continue to pay close attention to APi and Clean Harbors as they could maintain their solid performance.
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APi Group Corporation (APG): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).