Are Business Services Stocks Lagging APi Group (APG) 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. APi (APG) 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.

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APi is a member of our Business Services group, which includes 271 different companies and currently sits at #2 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

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. APi is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for APG's full-year earnings has moved 5% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, APG has gained about 39.6% so far this year. At the same time, Business Services stocks have gained an average of 0.9%. This means that APi 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 INTERTEK GP (IKTSY). The stock has returned 8.8% year-to-date.

Over the past three months, INTERTEK GP's consensus EPS estimate for the current year has increased 3.8%. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, APi belongs to the Business - Services industry, a group that includes 26 individual companies and currently sits at #64 in the Zacks Industry Rank. On average, stocks in this group have gained 16.3% this year, meaning that APG is performing better in terms of year-to-date returns.

On the other hand, INTERTEK GP belongs to the Business - Information Services industry. This 10-stock industry is currently ranked #15. The industry has moved -4.5% year to date.

Investors interested in the Business Services sector may want to keep a close eye on APi and INTERTEK GP as they attempt to continue their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research