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 Ingram Micro (INGM) 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.
Ingram Micro is a member of the Business Services sector. This group includes 247 individual stocks and currently holds a Zacks Sector Rank of #6. 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. Ingram Micro is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for INGM's full-year earnings has moved 2.2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, INGM has moved about 33% on a year-to-date basis. At the same time, Business Services stocks have lost an average of 7.4%. This means that Ingram Micro is performing better than its sector in terms of year-to-date returns.
Another stock in the Business Services sector, Joint Stock Company Kaspi.kz Sponsored ADR (KSPI), has outperformed the sector so far this year. The stock's year-to-date return is 12%.
Over the past three months, Joint Stock Company Kaspi.kz Sponsored ADR's consensus EPS estimate for the current year has increased 2.7%. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Ingram Micro belongs to the Technology Services industry, a group that includes 121 individual stocks and currently sits at #102 in the Zacks Industry Rank. On average, this group has lost an average of 7.6% so far this year, meaning that INGM is performing better in terms of year-to-date returns.
In contrast, Joint Stock Company Kaspi.kz Sponsored ADR falls under the Financial Transaction Services industry. Currently, this industry has 37 stocks and is ranked #83. Since the beginning of the year, the industry has moved -7.1%.
Ingram Micro and Joint Stock Company Kaspi.kz Sponsored ADR could continue their solid performance, so investors interested in Business Services stocks should continue to pay close attention to these stocks.
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Ingram Micro Holding Corporation (INGM): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).