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Is ABM Industries (ABM) Stock Outpacing Its Business Services Peers This Year?

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The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is ABM Industries (ABM - Free Report) one of those stocks right now? 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.

ABM Industries is one of 306 individual stocks in the Business Services sector. Collectively, these companies sit at #13 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. ABM Industries is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for ABM's full-year earnings has moved 5.2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, ABM has returned 12.7% so far this year. Meanwhile, stocks in the Business Services group have lost about 18.9% on average. As we can see, ABM Industries 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 Blucora . The stock is up 10% year-to-date.

Over the past three months, Blucora's consensus EPS estimate for the current year has increased 22.8%. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, ABM Industries is a member of the Building Products - Maintenance Service industry, which includes 4 individual companies and currently sits at #28 in the Zacks Industry Rank. On average, this group has lost an average of 2% so far this year, meaning that ABM is performing better in terms of year-to-date returns.

On the other hand, Blucora belongs to the Technology Services industry. This 159-stock industry is currently ranked #184. The industry has moved -29.5% year to date.

Investors with an interest in Business Services stocks should continue to track ABM Industries and Blucora. These stocks will be looking to continue their solid performance.


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