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 Innventure, Inc. (INV) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question.
Innventure, Inc. is one of 247 companies in the Business Services group. The Business Services group currently sits at #6 within 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. Innventure, Inc. is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for INV's full-year earnings has moved 33.2% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, INV has returned 15.3% so far this year. Meanwhile, stocks in the Business Services group have lost about 6.9% on average. This shows that Innventure, Inc. is outperforming its peers so far this year.
Another Business Services stock, which has outperformed the sector so far this year, is Sezzle Inc. (SEZL). The stock has returned 188.7% year-to-date.
The consensus estimate for Sezzle Inc.'s current year EPS has increased 8.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Innventure, Inc. is a member of the Technology Services industry, which includes 121 individual companies and currently sits at #107 in the Zacks Industry Rank. On average, this group has lost an average of 4.6% so far this year, meaning that INV is performing better in terms of year-to-date returns.
Sezzle Inc., however, belongs to the Financial Transaction Services industry. Currently, this 37-stock industry is ranked #50. The industry has moved -8.5% so far this year.
Investors interested in the Business Services sector may want to keep a close eye on Innventure, Inc. and Sezzle Inc. as they attempt to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).