Has Fathom (FTHM) Outpaced Other Business Services Stocks This Year?

The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Fathom Holdings (FTHM) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

Fathom Holdings is one of 234 companies in the Business Services group. The Business Services group currently sits at #9 within the Zacks Sector Rank. 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. Fathom Holdings is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for FTHM's full-year earnings has moved 11.4% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, FTHM has returned 11.9% so far this year. In comparison, Business Services companies have returned an average of -8.9%. This means that Fathom Holdings is outperforming the sector as a whole this year.

Another stock in the Business Services sector, Nexxen International Ltd. Sponsored ADR (NEXN), has outperformed the sector so far this year. The stock's year-to-date return is 13.5%.

In Nexxen International Ltd. Sponsored ADR's case, the consensus EPS estimate for the current year increased 11.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Fathom Holdings belongs to the Technology Services industry, a group that includes 111 individual stocks and currently sits at #172 in the Zacks Industry Rank. This group has lost an average of 1.1% so far this year, so FTHM is performing better in this area.

Nexxen International Ltd. Sponsored ADR, however, belongs to the Advertising and Marketing industry. Currently, this 15-stock industry is ranked #42. The industry has moved -9.4% so far this year.

Investors with an interest in Business Services stocks should continue to track Fathom Holdings and Nexxen International Ltd. Sponsored ADR. These stocks will be looking to continue their solid performance.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research