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

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ExlService Holdings (EXLS - Free Report) closed at $155.53 in the latest trading session, marking a -0.04% move from the prior day. This change lagged the S&P 500's daily gain of 1.3%. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 7.48%.

Heading into today, shares of the provider of outsourcing services had lost 8.76% over the past month, lagging the Business Services sector's loss of 5.71% and the S&P 500's loss of 2.95% in that time.

Investors will be hoping for strength from ExlService Holdings as it approaches its next earnings release. On that day, ExlService Holdings is projected to report earnings of $1.59 per share, which would represent year-over-year growth of 11.97%. Meanwhile, our latest consensus estimate is calling for revenue of $377.55 million, up 14.68% from the prior-year quarter.

EXLS's full-year Zacks Consensus Estimates are calling for earnings of $6.72 per share and revenue of $1.59 billion. These results would represent year-over-year changes of +11.63% and +12.54%, respectively.

Investors might also notice recent changes to analyst estimates for ExlService Holdings. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 1.18% higher. ExlService Holdings currently has a Zacks Rank of #3 (Hold).

Digging into valuation, ExlService Holdings currently has a Forward P/E ratio of 23.16. This represents a premium compared to its industry's average Forward P/E of 15.04.

We can also see that EXLS currently has a PEG ratio of 1.59. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EXLS's industry had an average PEG ratio of 1.6 as of yesterday's close.

The Outsourcing industry is part of the Business Services sector. This group has a Zacks Industry Rank of 48, putting it in the top 20% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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