Back to top

Image: Bigstock

Has Confluent (CFLT) Outpaced 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. Confluent (CFLT - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? 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.

Confluent is a member of our Business Services group, which includes 345 different companies and currently sits at #2 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. Confluent is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for CFLT's full-year earnings has moved 13.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that CFLT has returned about 4.1% since the start of the calendar year. At the same time, Business Services stocks have gained an average of 3.1%. This means that Confluent is performing better than its sector in terms of year-to-date returns.

HAYS (HAYPY - 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 13.4%.

For HAYS, the consensus EPS estimate for the current year has increased 2.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Confluent is a member of the Technology Services industry, which includes 199 individual companies and currently sits at #145 in the Zacks Industry Rank. This group has gained an average of 8.7% so far this year, so CFLT is slightly underperforming its industry in this area.

On the other hand, HAYS belongs to the Staffing Firms industry. This 18-stock industry is currently ranked #30. The industry has moved +2.1% year to date.

Investors interested in the Business Services sector may want to keep a close eye on Confluent and HAYS as they attempt to continue their solid performance.

See More Zacks Research for These Tickers

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

HAYS (HAYPY) - free report >>

Confluent, Inc. (CFLT) - free report >>

Published in