For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. CBIZ (CBZ) 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.
CBIZ is a member of our Business Services group, which includes 330 different companies and currently sits at #6 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. CBIZ is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for CBZ's full-year earnings has moved 1.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, CBZ has returned 7.2% so far this year. Meanwhile, the Business Services sector has returned an average of -23.5% on a year-to-date basis. This means that CBIZ is outperforming the sector as a whole this year.
Another Business Services stock, which has outperformed the sector so far this year, is Franklin Covey (FC). The stock has returned 8.8% year-to-date.
In Franklin Covey's case, the consensus EPS estimate for the current year increased 10.8% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, CBIZ belongs to the Consulting Services industry, a group that includes 15 individual stocks and currently sits at #46 in the Zacks Industry Rank. This group has lost an average of 27.3% so far this year, so CBZ is performing better in this area. Franklin Covey is also part of the same industry.
Investors with an interest in Business Services stocks should continue to track CBIZ and Franklin Covey. These stocks will be looking to continue their solid performance.
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