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Is Allot (ALLT) Outperforming Other Business Services Stocks This Year?
The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Allot Communications (ALLT - Free Report) been one of those stocks this year? 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.
Allot Communications is one of 344 individual stocks in the Business Services sector. Collectively, these companies sit at #9 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 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. Allot Communications is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for ALLT's full-year earnings has moved 8.8% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, ALLT has moved about 1.2% on a year-to-date basis. Meanwhile, stocks in the Business Services group have lost about 25.7% on average. As we can see, Allot Communications 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 Amplitude, Inc. (AMPL - Free Report) . The stock is up 5.6% year-to-date.
In Amplitude, Inc.'s case, the consensus EPS estimate for the current year increased 2.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Allot Communications is a member of the Technology Services industry, which includes 199 individual companies and currently sits at #92 in the Zacks Industry Rank. Stocks in this group have lost about 45.7% so far this year, so ALLT is performing better this group in terms of year-to-date returns. Amplitude, Inc. is also part of the same industry.
Allot Communications and Amplitude, Inc. could continue their solid performance, so investors interested in Business Services stocks should continue to pay close attention to these stocks.