Are Business Services Stocks Lagging Agora (API) 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. Agora, Inc. Sponsored ADR (API) 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.
Agora, Inc. Sponsored ADR is one of 344 companies in the Business Services group. The Business Services group currently sits at #9 within the Zacks Sector Rank. 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. Agora, Inc. Sponsored ADR is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for API's full-year earnings has moved 6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that API has returned about 4.6% since the start of the calendar year. In comparison, Business Services companies have returned an average of -26.8%. As we can see, Agora, Inc. Sponsored ADR is performing better than its sector in the calendar year.
Cap Gemini SA (CGEMY) is another Business Services stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 13.3%.
Over the past three months, Cap Gemini SA's consensus EPS estimate for the current year has increased 2.3%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Agora, Inc. Sponsored ADR is a member of the Technology Services industry, which includes 199 individual companies and currently sits at #136 in the Zacks Industry Rank. Stocks in this group have lost about 46.6% so far this year, so API is performing better this group in terms of year-to-date returns.
Cap Gemini SA, however, belongs to the Outsourcing industry. Currently, this 14-stock industry is ranked #83. The industry has moved -8% so far this year.
Going forward, investors interested in Business Services stocks should continue to pay close attention to Agora, Inc. Sponsored ADR and Cap Gemini SA as they could maintain their solid performance.
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