For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Shift4 Payments (FOUR) been one of those stocks this year? 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.
Shift4 Payments is one of 335 companies in the Business Services group. The Business Services group currently sits at #6 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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. Shift4 Payments is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for FOUR's full-year earnings has moved 25.6% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, FOUR has gained about 17.6% so far this year. Meanwhile, the Business Services sector has returned an average of 3.3% on a year-to-date basis. This shows that Shift4 Payments is outperforming its peers so far this year.
Another Business Services stock, which has outperformed the sector so far this year, is WPP PLC (WPP). The stock has returned 20.4% year-to-date.
In WPP PLC's case, the consensus EPS estimate for the current year increased 10% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Shift4 Payments is a member of the Financial Transaction Services industry, which includes 37 individual companies and currently sits at #74 in the Zacks Industry Rank. On average, stocks in this group have gained 9.6% this year, meaning that FOUR is performing better in terms of year-to-date returns.
On the other hand, WPP PLC belongs to the Advertising and Marketing industry. This 16-stock industry is currently ranked #69. The industry has moved +16.6% year to date.
Investors interested in the Business Services sector may want to keep a close eye on Shift4 Payments and WPP PLC as they attempt to continue their solid performance.
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