For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Brink's (BCO) 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.
Brink's is a member of the Business Services sector. This group includes 344 individual stocks and currently holds a Zacks Sector Rank of #5. 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 system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Brink's is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for BCO's full-year earnings has moved 3.4% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that BCO has returned about 23.4% since the start of the calendar year. Meanwhile, the Business Services sector has returned an average of 4.6% on a year-to-date basis. This means that Brink's is performing better than its sector in terms of year-to-date returns.
Another Business Services stock, which has outperformed the sector so far this year, is Confluent (CFLT). The stock has returned 8.2% year-to-date.
Over the past three months, Confluent's consensus EPS estimate for the current year has increased 13.4%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Brink's belongs to the Outsourcing industry, which includes 14 individual stocks and currently sits at #76 in the Zacks Industry Rank. Stocks in this group have lost about 3.4% so far this year, so BCO is performing better this group in terms of year-to-date returns.
On the other hand, Confluent belongs to the Technology Services industry. This 199-stock industry is currently ranked #108. The industry has moved +11.1% year to date.
Brink's and Confluent could continue their solid performance, so investors interested in Business Services stocks should continue to pay close attention to these stocks.
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