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Has ADTRAN HOLDINGS (ADTN) Outpaced 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 Adtran (ADTN - Free Report) been one of those stocks this year? 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.

Adtran is one of 330 individual stocks in the Business Services sector. Collectively, these companies sit at #6 in the Zacks Sector Rank. 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. Adtran is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for ADTN's full-year earnings has moved 33.8% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, ADTN has returned 1.9% so far this year. In comparison, Business Services companies have returned an average of -23.4%. This means that Adtran is performing better than its sector in terms of year-to-date returns.

Barrett Business Services (BBSI - 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 11.6%.

The consensus estimate for Barrett Business Services' current year EPS has increased 18% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Adtran belongs to the Technology Services industry, a group that includes 181 individual companies and currently sits at #130 in the Zacks Industry Rank. This group has lost an average of 40.4% so far this year, so ADTN is performing better in this area.

Barrett Business Services, however, belongs to the Outsourcing industry. Currently, this 14-stock industry is ranked #48. The industry has moved -12.2% so far this year.

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


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