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Are Business Services Stocks Lagging GEN DIGITAL INC (GEN) This Year?

The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Gen Digital (GEN) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Gen Digital is one of 315 companies in the Business Services group. The Business Services group currently sits at #2 within 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. Gen Digital is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for GEN's full-year earnings has moved 0.7% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

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Based on the latest available data, GEN has gained about 9.1% so far this year. Meanwhile, the Business Services sector has returned an average of 6.1% on a year-to-date basis. This means that Gen Digital is performing better than its sector in terms of year-to-date returns.

One other Business Services stock that has outperformed the sector so far this year is Kyndryl Holdings, Inc. (KD). The stock is up 31.7% year-to-date.

Over the past three months, Kyndryl Holdings, Inc.'s consensus EPS estimate for the current year has increased 22.5%. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Gen Digital belongs to the Technology Services industry, which includes 173 individual stocks and currently sits at #60 in the Zacks Industry Rank. On average, this group has gained an average of 15.6% so far this year, meaning that GEN is slightly underperforming its industry in terms of year-to-date returns. Kyndryl Holdings, Inc. is also part of the same industry.

Investors with an interest in Business Services stocks should continue to track Gen Digital and Kyndryl Holdings, Inc. These stocks will be looking to continue their solid performance.

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Gen Digital Inc. (GEN) : Free Stock Analysis Report

Kyndryl Holdings, Inc. (KD) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research