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Has ABM Industries (ABM) Outpaced Other Business Services Stocks This Year?

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For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Is ABM Industries (ABM - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

ABM Industries is one of 306 individual stocks in the Business Services sector. Collectively, these companies sit at #11 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 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. ABM Industries is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for ABM's full-year earnings has moved 5.1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, ABM has gained about 8.9% so far this year. In comparison, Business Services companies have returned an average of -12.1%. This means that ABM Industries is outperforming the sector as a whole this year.

Another stock in the Business Services sector, Brink's (BCO - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 3.4%.

In Brink's' case, the consensus EPS estimate for the current year increased 0.4% over the past three months. The stock currently has a Zacks Rank #2 (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 #54 in the Zacks Industry Rank. On average, this group has gained 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, Brink's belongs to the Outsourcing industry. This 13-stock industry is currently ranked #104. The industry has moved -8.8% year to date.

Going forward, investors interested in Business Services stocks should continue to pay close attention to ABM Industries and Brink's as they could maintain their solid performance.


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