Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Allot Communications (ALLT) 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question.
Allot Communications is a member of our Business Services group, which includes 292 different companies and currently sits at #4 in the Zacks Sector Rank. 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. Allot Communications is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for ALLT's full-year earnings has moved 22.2% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, ALLT has moved about 25.7% on a year-to-date basis. In comparison, Business Services companies have returned an average of 17.1%. This means that Allot Communications is outperforming the sector as a whole this year.
One other Business Services stock that has outperformed the sector so far this year is OppFi Inc. (OPFI). The stock is up 21.3% year-to-date.
For OppFi Inc. the consensus EPS estimate for the current year has increased 25% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Allot Communications is a member of the Technology Services industry, which includes 156 individual companies and currently sits at #75 in the Zacks Industry Rank. On average, this group has gained an average of 46.7% so far this year, meaning that ALLT is slightly underperforming its industry in terms of year-to-date returns.
On the other hand, OppFi Inc. belongs to the Financial Transaction Services industry. This 36-stock industry is currently ranked #75. The industry has moved +18.4% year to date.
Going forward, investors interested in Business Services stocks should continue to pay close attention to Allot Communications and OppFi Inc. as they could maintain their solid performance.
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