The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Quad/Graphics (QUAD) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? 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.
Quad/Graphics is one of 238 individual stocks in the Business Services sector. Collectively, these companies sit at #13 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. Quad/Graphics is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for QUAD's full-year earnings has moved 1.7% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, QUAD has returned 3.8% so far this year. Meanwhile, stocks in the Business Services group have lost about 10.1% on average. As we can see, Quad/Graphics is performing better than its sector in the calendar year.
One other Business Services stock that has outperformed the sector so far this year is Sezzle Inc. (SEZL). The stock is up 7.3% year-to-date.
Over the past three months, Sezzle Inc.'s consensus EPS estimate for the current year has increased 7.3%. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Quad/Graphics belongs to the Advertising and Marketing industry, a group that includes 15 individual stocks and currently sits at #72 in the Zacks Industry Rank. This group has lost an average of 7.6% so far this year, so QUAD is performing better in this area.
On the other hand, Sezzle Inc. belongs to the Financial Transaction Services industry. This 37-stock industry is currently ranked #157. The industry has moved -12.3% year to date.
Investors interested in the Business Services sector may want to keep a close eye on Quad/Graphics and Sezzle Inc. as they attempt to continue their solid performance.
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Quad Graphics, Inc (QUAD): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).