Is Distribution Solutions Group (DSGR) Stock Outpacing Its Business Services Peers This Year?

Zacks
2024-09-19

Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Has Distribution Solutions Group (DSGR) 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.

Distribution Solutions Group is a member of our Business Services group, which includes 317 different companies and currently sits at #6 in the Zacks Sector Rank. 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 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. Distribution Solutions Group is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for DSGR's full-year earnings has moved 16.8% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, DSGR has returned 17.9% so far this year. Meanwhile, the Business Services sector has returned an average of 16.3% on a year-to-date basis. This means that Distribution Solutions Group is outperforming the sector as a whole this year.

One other Business Services stock that has outperformed the sector so far this year is SGS SA (SGSOY). The stock is up 30.9% year-to-date.

The consensus estimate for SGS SA's current year EPS has increased 0.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Distribution Solutions Group belongs to the Technology Services industry, a group that includes 171 individual companies and currently sits at #75 in the Zacks Industry Rank. On average, this group has gained an average of 26.1% so far this year, meaning that DSGR is slightly underperforming its industry in terms of year-to-date returns.

SGS SA, however, belongs to the Business - Services industry. Currently, this 24-stock industry is ranked #92. The industry has moved -3.6% so far this year.

Distribution Solutions Group and SGS SA could continue their solid performance, so investors interested in Business Services stocks should continue to pay close attention to these stocks.

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