For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Slack Technologies is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? One simple way to answer this question is to take a look at the year-to-date performance of WORK and the rest of the Business Services group's stocks.
Slack Technologies is a member of the Business Services sector. This group includes 209 individual stocks and currently holds a Zacks Sector Rank of #5. 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 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 5.75% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, WORK has gained about 87.90% so far this year. At the same time, Business Services stocks have lost an average of 2.50%. This means that Slack Technologies is performing better than its sector in terms of year-to-date returns.
Looking more specifically, WORK belongs to the Technology Services industry, which includes 74 individual stocks and currently sits at #167 in the Zacks Industry Rank. On average, stocks in this group have gained 13.06% this year, meaning that WORK is performing better in terms of year-to-date returns.
Investors with an interest in Business Services stocks should continue to track WORK. The stock will be looking to continue its solid performance.