Back to top

Image: Bigstock

Is Gartner (IT) Outperforming Other Business Services Stocks This Year?

Read MoreHide Full Article

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 Gartner (IT - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question.

Gartner is a member of the Business Services sector. This group includes 278 individual stocks and currently holds a Zacks Sector Rank of #6. 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 system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Gartner is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for IT's full-year earnings has moved 11.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, IT has moved about 100.5% on a year-to-date basis. Meanwhile, the Business Services sector has returned an average of -26.2% on a year-to-date basis. As we can see, Gartner is performing better than its sector in the calendar year.

One other Business Services stock that has outperformed the sector so far this year is Korn/Ferry (KFY - Free Report) . The stock is up 72.2% year-to-date.

For Korn/Ferry, the consensus EPS estimate for the current year has increased 24.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Gartner belongs to the Consulting Services industry, a group that includes 15 individual stocks and currently sits at #24 in the Zacks Industry Rank. On average, stocks in this group have gained 40% this year, meaning that IT is performing better in terms of year-to-date returns.

Korn/Ferry, however, belongs to the Staffing Firms industry. Currently, this 16-stock industry is ranked #29. The industry has moved +47.1% so far this year.

Gartner and Korn/Ferry could continue their solid performance, so investors interested in Business Services stocks should continue to pay close attention to these stocks.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Gartner, Inc. (IT) - free report >>

KornFerry International (KFY) - free report >>

Published in