Back to top

Image: Bigstock

Are Business Services Stocks Lagging Cap Gemini (CGEMY) 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. Has Cap Gemini SA (CGEMY - 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.

Cap Gemini SA is one of 330 individual stocks in the Business Services sector. Collectively, these companies sit at #10 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. Cap Gemini SA is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for CGEMY's full-year earnings has moved 1.4% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that CGEMY has returned about 12.1% since the start of the calendar year. Meanwhile, the Business Services sector has returned an average of 11.3% on a year-to-date basis. This means that Cap Gemini SA is outperforming the sector as a whole this year.

One other Business Services stock that has outperformed the sector so far this year is Crawford & Company B (CRD.B - Free Report) . The stock is up 85.1% year-to-date.

In Crawford & Company B's case, the consensus EPS estimate for the current year increased 4.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Cap Gemini SA belongs to the Outsourcing industry, which includes 13 individual stocks and currently sits at #111 in the Zacks Industry Rank. On average, stocks in this group have gained 9.8% this year, meaning that CGEMY is performing better in terms of year-to-date returns.

On the other hand, Crawford & Company B belongs to the Business - Services industry. This 25-stock industry is currently ranked #202. The industry has moved +16.4% year to date.

Going forward, investors interested in Business Services stocks should continue to pay close attention to Cap Gemini SA and Crawford & Company B as they could maintain their solid performance.


See More Zacks Research for These Tickers


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


Cap Gemini SA (CGEMY) - free report >>

Crawford & Company (CRD.B) - free report >>

Published in