Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Sezzle Inc. (SEZL) 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? 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.
Sezzle Inc. is a member of the Business Services sector. This group includes 234 individual stocks and currently holds a Zacks Sector Rank of #8. 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 is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Sezzle Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for SEZL's full-year earnings has moved 8.2% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that SEZL has returned about 103% since the start of the calendar year. Meanwhile, the Business Services sector has returned an average of -12.8% on a year-to-date basis. This means that Sezzle Inc. 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 UL Solutions Inc. (ULS). The stock is up 24.8% year-to-date.
The consensus estimate for UL Solutions Inc.'s current year EPS has increased 3.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Sezzle Inc. belongs to the Financial Transaction Services industry, a group that includes 35 individual companies and currently sits at #76 in the Zacks Industry Rank. This group has lost an average of 18.4% so far this year, so SEZL is performing better in this area.
In contrast, UL Solutions Inc. falls under the Business - Services industry. Currently, this industry has 20 stocks and is ranked #78. Since the beginning of the year, the industry has moved -16.6%.
Investors with an interest in Business Services stocks should continue to track Sezzle Inc. and UL Solutions Inc.. These stocks will be looking to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).