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On a whole, 2017 proved to be great year with the markets displaying a solid bull run. The benchmark S&P 500 index has gained 20% year to date and is on the course to record its best performance in four years while Nasdaq has surged 29.1%. Buoyed by a healthy economic growth and tax overhaul euphoria, the Dow Jones Industrial Average is up an impressive 25.7% year to date and is close to hitting the historic figure of 25,000.
The U.S. economy has taken some positive strides throughout the year buoyed by rise in consumer spending, improvement in labor market, higher customer confidence and rise in wages. Additionally, three interest rate hikes this year by the Fed, indicating inherent economic stability, have boosted investors’ confidence. As the curtains roll down on an eventful year, let us do a quick recap of the top performing Business Services stocks of 2017.
Sector Tailwinds
The Business Services sector accounts for the lion’s share of the U.S. GDP and recorded a solid year-to-date average rally of 19.9% — on par with the S&P 500. The primary growth drivers in this highly fragmented industry hinge on a healthy economy owing to a positive correlation along with decent prospects of job growth, higher disposable income and new business initiatives. Enjoying the fruits of a resurgent job market, low inflationary pressures and cheaper oil bills — consumer confidence has also held its fort, further propelling the sector’s growth.
The sector covers an array of services including marketing, consulting, staffing, security, telecommunications, Internet services, logistics and waste handling. An ideal mix of services, effective marketing strategies and ability to retain and attract new customers make the perfect recipe for profitability for most of the companies within the sector.
Key Picks
Amid a diverse range of companies in this arena, we have selected four stocks that have fared better than the index with the help of the Zacks Stock Screener. Such stocks are poised to gain even further in the near term based on an improving domestic economy and benefits from lower tax rates.
Genpact Limited (G - Free Report) : Hamilton, Bermuda-based Genpact helps diverse companies across the globe to grow their business by applying Six Sigma and Lean principles to continuously improve business processes. The company combines process expertise, information technology and analytical capabilities with operational insight and experience in diverse industries to provide a wide range of services using its global delivery platform.
Genpact has a Zacks Rank #2 and a VGM Score of B. The company has returned 32.1% year to date and boasts a market cap of $6.2 billion. Moreover, the Zacks Consensus Estimate for the current fiscal year has moved 2.6% upward over the last 60 days — implying inherent strength, as a positive earnings estimate revision generally translates into rapid price appreciation.
Kelly Services, Inc. (KELYA - Free Report) : Headquartered in Troy, MI, Kelly Services offers workforce solutions to various industries worldwide. This Zacks Rank #1 stock has a VGM Score of B and a market cap in excess of $1 billion. Its shares have jumped 20.5% so far this year. The Zacks Consensus Estimate for the current fiscal year has moved 17.9% upward over the last 60 days.
S&P Global Inc. (SPGI - Free Report) : Formerly known as McGraw-Hill Financial, S&P Global is the provider of financial information, and is the owner of one of the top credit rating agencies (Standard & Poor’s). The company primarily focuses on capital and commodities markets, boasting iconic brands like S&P Ratings, S&P Capital IQ, S&P Indices and Platts.
S&P Global has a Zacks Rank #2 and a VGM Score of B. The company has returned 57.9% year to date and has a market cap of $42.7 billion. Moreover, the Zacks Consensus Estimate for the current fiscal year has moved 1.2% upward over the last 60 days.
Total System Services, Inc. : Columbus, GA-based Total System Services provides electronic payment processing, merchant services and related services to financial and non-financial institutions in the United States and internationally. This Zacks Rank #2 stock has a VGM Score of B and a market cap of $14.1 billion. Total System Services has surged 62.5% so far this year. The Zacks Consensus Estimate for the current fiscal year has moved 1.8% upward over the last 90 days.
Moving Forward
As the equity markets appear quite enterprising driven by a resilient economy, a sneak peek at some sector outperformers backed by a solid Zacks Rank and a healthy return could be a great idea for investors. These stocks seem to hold great promise for the future and are likely to reward shareholders generously.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
4 Top Performing Business Services Stocks of 2017
On a whole, 2017 proved to be great year with the markets displaying a solid bull run. The benchmark S&P 500 index has gained 20% year to date and is on the course to record its best performance in four years while Nasdaq has surged 29.1%. Buoyed by a healthy economic growth and tax overhaul euphoria, the Dow Jones Industrial Average is up an impressive 25.7% year to date and is close to hitting the historic figure of 25,000.
The U.S. economy has taken some positive strides throughout the year buoyed by rise in consumer spending, improvement in labor market, higher customer confidence and rise in wages. Additionally, three interest rate hikes this year by the Fed, indicating inherent economic stability, have boosted investors’ confidence. As the curtains roll down on an eventful year, let us do a quick recap of the top performing Business Services stocks of 2017.
Sector Tailwinds
The Business Services sector accounts for the lion’s share of the U.S. GDP and recorded a solid year-to-date average rally of 19.9% — on par with the S&P 500. The primary growth drivers in this highly fragmented industry hinge on a healthy economy owing to a positive correlation along with decent prospects of job growth, higher disposable income and new business initiatives. Enjoying the fruits of a resurgent job market, low inflationary pressures and cheaper oil bills — consumer confidence has also held its fort, further propelling the sector’s growth.
The sector covers an array of services including marketing, consulting, staffing, security, telecommunications, Internet services, logistics and waste handling. An ideal mix of services, effective marketing strategies and ability to retain and attract new customers make the perfect recipe for profitability for most of the companies within the sector.
Key Picks
Amid a diverse range of companies in this arena, we have selected four stocks that have fared better than the index with the help of the Zacks Stock Screener. Such stocks are poised to gain even further in the near term based on an improving domestic economy and benefits from lower tax rates.
These stocks have a Zacks Rank #1 (Strong Buy) or 2 (Buy), market cap in excess of $1 billion and a VGM Score of B or better. You can see the complete list of today’s Zacks #1 Rank stocks here.
Genpact Limited (G - Free Report) : Hamilton, Bermuda-based Genpact helps diverse companies across the globe to grow their business by applying Six Sigma and Lean principles to continuously improve business processes. The company combines process expertise, information technology and analytical capabilities with operational insight and experience in diverse industries to provide a wide range of services using its global delivery platform.
Genpact has a Zacks Rank #2 and a VGM Score of B. The company has returned 32.1% year to date and boasts a market cap of $6.2 billion. Moreover, the Zacks Consensus Estimate for the current fiscal year has moved 2.6% upward over the last 60 days — implying inherent strength, as a positive earnings estimate revision generally translates into rapid price appreciation.
(Looking for the Best Stocks for 2018? Be among the first to see our Top Ten Stocks for 2018 portfolio here.)
Kelly Services, Inc. (KELYA - Free Report) : Headquartered in Troy, MI, Kelly Services offers workforce solutions to various industries worldwide. This Zacks Rank #1 stock has a VGM Score of B and a market cap in excess of $1 billion. Its shares have jumped 20.5% so far this year. The Zacks Consensus Estimate for the current fiscal year has moved 17.9% upward over the last 60 days.
S&P Global Inc. (SPGI - Free Report) : Formerly known as McGraw-Hill Financial, S&P Global is the provider of financial information, and is the owner of one of the top credit rating agencies (Standard & Poor’s). The company primarily focuses on capital and commodities markets, boasting iconic brands like S&P Ratings, S&P Capital IQ, S&P Indices and Platts.
S&P Global has a Zacks Rank #2 and a VGM Score of B. The company has returned 57.9% year to date and has a market cap of $42.7 billion. Moreover, the Zacks Consensus Estimate for the current fiscal year has moved 1.2% upward over the last 60 days.
Total System Services, Inc. : Columbus, GA-based Total System Services provides electronic payment processing, merchant services and related services to financial and non-financial institutions in the United States and internationally. This Zacks Rank #2 stock has a VGM Score of B and a market cap of $14.1 billion. Total System Services has surged 62.5% so far this year. The Zacks Consensus Estimate for the current fiscal year has moved 1.8% upward over the last 90 days.
Moving Forward
As the equity markets appear quite enterprising driven by a resilient economy, a sneak peek at some sector outperformers backed by a solid Zacks Rank and a healthy return could be a great idea for investors. These stocks seem to hold great promise for the future and are likely to reward shareholders generously.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>