Is Evertec (EVTC) 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. Is Evertec (EVTC) one of those stocks right now? 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.

Evertec is one of 246 individual stocks in the Business Services sector. Collectively, these companies sit at #10 in 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 is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Evertec is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for EVTC's full-year earnings has moved 5.6% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, EVTC has moved about 3.1% on a year-to-date basis. Meanwhile, the Business Services sector has returned an average of -7.5% on a year-to-date basis. This means that Evertec is performing better than its sector in terms of year-to-date returns.

DLocal (DLO) is another Business Services stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 6.3%.

For DLocal, the consensus EPS estimate for the current year has increased 0.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Evertec belongs to the Financial Transaction Services industry, a group that includes 37 individual companies and currently sits at #150 in the Zacks Industry Rank. Stocks in this group have lost about 2.9% so far this year, so EVTC is performing better this group in terms of year-to-date returns. DLocal is also part of the same industry.

Investors interested in the Business Services sector may want to keep a close eye on Evertec and DLocal as they attempt to continue their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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