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Is Cap Gemini (CGEMY) Stock Outpacing Its Business Services Peers This Year?

For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Cap Gemini SA (CGEMY) 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.

Cap Gemini SA is a member of the Business Services sector. This group includes 345 individual stocks and currently holds a Zacks Sector Rank of #6. 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 model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Cap Gemini SA is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for CGEMY's full-year earnings has moved 8.6% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

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Based on the latest available data, CGEMY has gained about 14% so far this year. At the same time, Business Services stocks have gained an average of 4.2%. This means that Cap Gemini SA is performing better than its sector in terms of year-to-date returns.

Core & Main (CNM) is another Business Services stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 22.1%.

In Core & Main's case, the consensus EPS estimate for the current year increased 5.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Cap Gemini SA belongs to the Outsourcing industry, which includes 14 individual stocks and currently sits at #93 in the Zacks Industry Rank. On average, this group has lost an average of 4.1% so far this year, meaning that CGEMY is performing better in terms of year-to-date returns.

On the other hand, Core & Main belongs to the Waste Removal Services industry. This 16-stock industry is currently ranked #81. The industry has moved -0.4% year to date.

Going forward, investors interested in Business Services stocks should continue to pay close attention to Cap Gemini SA and Core & Main as they could maintain their solid performance.

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Cap Gemini SA (CGEMY) : Free Stock Analysis Report

Core & Main, Inc. (CNM) : Free Stock Analysis Report

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Zacks Investment Research