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ExlService Holdings (EXLS) Outpaces Stock Market Gains: What You Should Know

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ExlService Holdings (EXLS - Free Report) closed at $171.87 in the latest trading session, marking a +1.48% move from the prior day. This change outpaced the S&P 500's 1.19% gain on the day. Meanwhile, the Dow gained 0.76%, and the Nasdaq, a tech-heavy index, added 0.29%.

Prior to today's trading, shares of the provider of outsourcing services had lost 1.78% over the past month. This has lagged the Business Services sector's gain of 7.59% and the S&P 500's gain of 4.06% in that time.

ExlService Holdings will be looking to display strength as it nears its next earnings release. In that report, analysts expect ExlService Holdings to post earnings of $1.47 per share. This would mark year-over-year growth of 21.49%. Our most recent consensus estimate is calling for quarterly revenue of $361.14 million, up 22.22% from the year-ago period.

It is also important to note the recent changes to analyst estimates for ExlService Holdings. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% higher. ExlService Holdings currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, ExlService Holdings is holding a Forward P/E ratio of 25.58. Its industry sports an average Forward P/E of 15.79, so we one might conclude that ExlService Holdings is trading at a premium comparatively.

We can also see that EXLS currently has a PEG ratio of 1.53. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Outsourcing industry currently had an average PEG ratio of 1.36 as of yesterday's close.

The Outsourcing industry is part of the Business Services sector. This group has a Zacks Industry Rank of 86, putting it in the top 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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