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 Clean Harbors (CLH) 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.
Clean Harbors is one of 234 individual stocks in the Business Services sector. Collectively, these companies sit at #10 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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. Clean Harbors is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for CLH's full-year earnings has moved 3.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, CLH has returned 22.8% so far this year. In comparison, Business Services companies have returned an average of -10.4%. This means that Clean Harbors 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 Deluxe (DLX). The stock is up 17.4% year-to-date.
Over the past three months, Deluxe's consensus EPS estimate for the current year has increased 4.3%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Clean Harbors belongs to the Waste Removal Services industry, a group that includes 21 individual stocks and currently sits at #160 in the Zacks Industry Rank. On average, stocks in this group have lost 5.6% this year, meaning that CLH is performing better in terms of year-to-date returns.
Deluxe, however, belongs to the Business - Office Products industry. Currently, this 2-stock industry is ranked #99. The industry has moved -11.3% so far this year.
Investors with an interest in Business Services stocks should continue to track Clean Harbors and Deluxe. These stocks will be looking to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).