Are Business Services Stocks Lagging BGSF (BGSF) 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. Has BGSF (BGSF) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

BGSF is a member of the Business Services sector. This group includes 260 individual stocks and currently holds a Zacks Sector Rank of #1. 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.

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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. BGSF is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for BGSF's full-year earnings has moved 366.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that BGSF has returned about 40.1% since the start of the calendar year. Meanwhile, stocks in the Business Services group have gained about 4.1% on average. This means that BGSF is performing better than its sector in terms of year-to-date returns.

Another Business Services stock, which has outperformed the sector so far this year, is Cintas (CTAS). The stock has returned 20.1% year-to-date.

For Cintas, the consensus EPS estimate for the current year has increased 0.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, BGSF belongs to the Business - Services industry, a group that includes 26 individual companies and currently sits at #37 in the Zacks Industry Rank. On average, this group has gained an average of 19.1% so far this year, meaning that BGSF is performing better in terms of year-to-date returns. Cintas is also part of the same industry.

Investors interested in the Business Services sector may want to keep a close eye on BGSF and Cintas as they attempt to continue their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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