For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. RCM Technologies, Inc. (RCMT) 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? 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.
RCM Technologies, Inc. is a member of the Business Services sector. This group includes 234 individual stocks and currently holds a Zacks Sector Rank of #12. 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. RCM Technologies, Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for RCMT's full-year earnings has moved 12.7% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that RCMT has returned about 38.7% since the start of the calendar year. Meanwhile, stocks in the Business Services group have lost about 11.5% on average. This means that RCM Technologies, Inc. is outperforming the sector as a whole this year.
Vontier Corporation (VNT) 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%.
In Vontier Corporation's case, the consensus EPS estimate for the current year increased 1.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, RCM Technologies, Inc. belongs to the Staffing Firms industry, a group that includes 13 individual companies and currently sits at #183 in the Zacks Industry Rank. On average, stocks in this group have lost 2.9% this year, meaning that RCMT is performing better in terms of year-to-date returns.
In contrast, Vontier Corporation falls under the Technology Services industry. Currently, this industry has 111 stocks and is ranked #171. Since the beginning of the year, the industry has moved -8.5%.
Investors with an interest in Business Services stocks should continue to track RCM Technologies, Inc. and Vontier Corporation. These stocks will be looking to continue their solid performance.
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RCM Technologies, Inc. (RCMT): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).