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Is Rollins (ROL) Outperforming Other Business Services Stocks This Year?

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Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Has Rollins (ROL - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

Rollins is a member of the Business Services sector. This group includes 333 individual stocks and currently holds a Zacks Sector Rank of #8. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

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. Rollins is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for ROL's full-year earnings has moved 1.9% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, ROL has gained about 22.8% so far this year. Meanwhile, the Business Services sector has returned an average of -28.1% on a year-to-date basis. As we can see, Rollins is performing better than its sector in the calendar year.

Automatic Data Processing (ADP - Free Report) is another Business Services stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 3.4%.

In Automatic Data Processing's case, the consensus EPS estimate for the current year increased 1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Rollins belongs to the Building Products - Maintenance Service industry, a group that includes 3 individual stocks and currently sits at #42 in the Zacks Industry Rank. This group has gained an average of 20.1% so far this year, so ROL is performing better in this area.

Automatic Data Processing, however, belongs to the Outsourcing industry. Currently, this 14-stock industry is ranked #65. The industry has moved +2% so far this year.

Going forward, investors interested in Business Services stocks should continue to pay close attention to Rollins and Automatic Data Processing as they could maintain their solid performance.


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