The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Ralliant (RAL) 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.
Ralliant is a member of our Business Services group, which includes 248 different companies and currently sits at #11 in the Zacks Sector Rank. 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 is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Ralliant is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for RAL's full-year earnings has moved 9% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, RAL has gained about 32.7% so far this year. In comparison, Business Services companies have returned an average of -12%. This means that Ralliant is outperforming the sector as a whole this year.
Remitly Global, Inc. (RELY) is another Business Services stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 60.5%.
The consensus estimate for Remitly Global, Inc.'s current year EPS has increased 37.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Ralliant belongs to the Technology Services industry, a group that includes 122 individual companies and currently sits at #160 in the Zacks Industry Rank. On average, stocks in this group have lost 14.1% this year, meaning that RAL is performing better in terms of year-to-date returns.
Remitly Global, Inc., however, belongs to the Financial Transaction Services industry. Currently, this 37-stock industry is ranked #173. The industry has moved -11.2% so far this year.
Going forward, investors interested in Business Services stocks should continue to pay close attention to Ralliant and Remitly Global, Inc. as they could maintain their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).