The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. SGS SA (SGSOY) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.
SGS SA is a member of the Business Services sector. This group includes 310 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 proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. SGS SA is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for SGSOY's full-year earnings has moved 4.2% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, SGSOY has returned 23.1% so far this year. At the same time, Business Services stocks have gained an average of 14.3%. As we can see, SGS SA is performing better than its sector in the calendar year.
Fidelity National Information Services (FIS) is another Business Services stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 49.4%.
In Fidelity National Information Services' case, the consensus EPS estimate for the current year increased 2.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, SGS SA belongs to the Business - Services industry, a group that includes 24 individual companies and currently sits at #94 in the Zacks Industry Rank. On average, this group has lost an average of 14.2% so far this year, meaning that SGSOY is performing better in terms of year-to-date returns.
Fidelity National Information Services, however, belongs to the Financial Transaction Services industry. Currently, this 43-stock industry is ranked #74. The industry has moved +14.9% so far this year.
Investors with an interest in Business Services stocks should continue to track SGS SA and Fidelity National Information Services. These stocks will be looking to continue their solid performance.
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