Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Has Evertec (EVTC) been one of those stocks this year? 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.
Evertec is one of 245 companies in the Business Services group. The Business Services group currently sits at #9 within 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. Evertec is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for EVTC's full-year earnings has moved 5.6% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that EVTC has returned about 0.1% since the start of the calendar year. Meanwhile, the Business Services sector has returned an average of -14.1% on a year-to-date basis. This means that Evertec is outperforming the sector as a whole this year.
Information Services Group (III) is another Business Services stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 0.7%.
For Information Services Group, the consensus EPS estimate for the current year has increased 3.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Evertec is a member of the Financial Transaction Services industry, which includes 36 individual companies and currently sits at #162 in the Zacks Industry Rank. On average, this group has lost an average of 12.3% so far this year, meaning that EVTC is performing better in terms of year-to-date returns.
On the other hand, Information Services Group belongs to the Consulting Services industry. This 13-stock industry is currently ranked #81. The industry has moved -25.6% year to date.
Going forward, investors interested in Business Services stocks should continue to pay close attention to Evertec and Information Services Group as they could maintain their solid performance.
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Evertec, Inc. (EVTC): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).