Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Palantir Technologies Inc. (PLTR) 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.
Palantir Technologies Inc. is one of 335 individual stocks in the Business Services sector. Collectively, these companies sit at #9 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 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. Palantir Technologies Inc. is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for PLTR's full-year earnings has moved 18.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, PLTR has gained about 48.3% so far this year. In comparison, Business Services companies have returned an average of 4%. This shows that Palantir Technologies Inc. is outperforming its peers so far this year.
One other Business Services stock that has outperformed the sector so far this year is Paysafe Limited (PSFE). The stock is up 4.3% year-to-date.
For Paysafe Limited, the consensus EPS estimate for the current year has increased 41.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Palantir Technologies Inc. belongs to the Technology Services industry, a group that includes 195 individual stocks and currently sits at #117 in the Zacks Industry Rank. On average, this group has gained an average of 4.5% so far this year, meaning that PLTR is performing better in terms of year-to-date returns.
On the other hand, Paysafe Limited belongs to the Financial Transaction Services industry. This 37-stock industry is currently ranked #95. The industry has moved +9.6% year to date.
Palantir Technologies Inc. and Paysafe Limited 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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