Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Has Paychex (PAYX) 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.
Paychex is a member of the Business Services sector. This group includes 277 individual stocks and currently holds a Zacks Sector Rank of #5. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Paychex is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for PAYX’s full-year earnings has moved 7.3% higher. This signals that analyst sentiment is improving and the stock’s earnings outlook is more positive.
Based on the most recent data, PAYX has returned 44.1% so far this year. Meanwhile, stocks in the Business Services group have lost about 24.3% on average. As we can see, Paychex is performing better than its sector in the calendar year.
One other Business Services stock that has outperformed the sector so far this year is Seagate (STX). The stock is up 79.3% year-to-date.
For Seagate, the consensus EPS estimate for the current year has increased 7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Paychex belongs to the Outsourcing industry, which includes 13 individual stocks and currently sits at #95 in the Zacks Industry Rank. This group has gained an average of 35.2% so far this year, so PAYX is performing better in this area.
On the other hand, Seagate belongs to the Technology Services industry. This 134-stock industry is currently ranked #172. The industry has moved -31.4% year to date.
Investors with an interest in Business Services stocks should continue to track Paychex and Seagate. These stocks will be looking to continue their solid performance.
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