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Are Business Services Stocks Lagging ADEIA INC (ADEA) This Year?

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The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Adeia (ADEA - Free Report) one of those stocks right now? 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.

Adeia is a member of our Business Services group, which includes 334 different companies and currently sits at #8 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

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. Adeia is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for ADEA's full-year earnings has moved 67.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, ADEA has returned 11.7% so far this year. Meanwhile, the Business Services sector has returned an average of 5.5% on a year-to-date basis. This means that Adeia is outperforming the sector as a whole this year.

Another Business Services stock, which has outperformed the sector so far this year, is Omnicom (OMC - Free Report) . The stock has returned 16.2% year-to-date.

In Omnicom's case, the consensus EPS estimate for the current year increased 3.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Adeia belongs to the Technology Services industry, a group that includes 193 individual stocks and currently sits at #109 in the Zacks Industry Rank. On average, stocks in this group have gained 15.8% this year, meaning that ADEA is slightly underperforming its industry in terms of year-to-date returns.

Omnicom, however, belongs to the Advertising and Marketing industry. Currently, this 16-stock industry is ranked #170. The industry has moved +12.5% so far this year.

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


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