Are Business Services Stocks Lagging COHERENT CORP (COHR) This Year?

Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Is Coherent (COHR) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Coherent 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 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. Coherent is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for COHR's full-year earnings has moved 15.2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, COHR has returned 54.6% so far this year. Meanwhile, the Business Services sector has returned an average of -8.8% on a year-to-date basis. This shows that Coherent is outperforming its peers so far this year.

One other Business Services stock that has outperformed the sector so far this year is Enpro (NPO). The stock is up 51.6% year-to-date.

For Enpro, the consensus EPS estimate for the current year has increased 3.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Coherent belongs to the Technology Services industry, which includes 121 individual stocks and currently sits at #99 in the Zacks Industry Rank. Stocks in this group have lost about 9.1% so far this year, so COHR is performing better this group in terms of year-to-date returns. Enpro is also part of the same industry.

Investors interested in the Business Services sector may want to keep a close eye on Coherent and Enpro 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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