The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Shift4 Payments (FOUR) been one of those stocks this year? 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.
Shift4 Payments is a member of the Business Services sector. This group includes 335 individual stocks and currently holds a Zacks Sector Rank of #6. 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 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. Shift4 Payments is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for FOUR's full-year earnings has moved 24.9% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, FOUR has returned 11.2% so far this year. In comparison, Business Services companies have returned an average of 2%. This means that Shift4 Payments is outperforming the sector as a whole this year.
Another stock in the Business Services sector, MasterCard (MA), has outperformed the sector so far this year. The stock's year-to-date return is 10.6%.
For MasterCard, the consensus EPS estimate for the current year has increased 1.2% 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 #48 in the Zacks Industry Rank. This group has gained an average of 10.2% so far this year, so FOUR is performing better in this area. MasterCard is also part of the same industry.
Investors interested in the Business Services sector may want to keep a close eye on Shift4 Payments and MasterCard as they attempt to continue their solid performance.
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