The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Slack Technologies one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Business Services peers, we might be able to answer that question.
Slack Technologies is one of 208 individual stocks in the Business Services sector. Collectively, these companies sit at #5 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 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. WORK is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for WORK's full-year earnings has moved 5.60% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, WORK has gained about 26.56% so far this year. In comparison, Business Services companies have returned an average of -5.44%. This means that Slack Technologies is performing better than its sector in terms of year-to-date returns.
To break things down more, WORK belongs to the Technology Services industry, a group that includes 72 individual companies and currently sits at #167 in the Zacks Industry Rank. On average, stocks in this group have gained 12.18% this year, meaning that WORK is performing better in terms of year-to-date returns.
Investors in the Business Services sector will want to keep a close eye on WORK as it attempts to continue its solid performance.