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Are Business Services Stocks Lagging Broadridge Financial Solutions (BR) 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. Broadridge Financial Solutions (BR - 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.

Broadridge Financial Solutions is a member of our Business Services group, which includes 329 different companies and currently sits at #10 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Broadridge Financial Solutions is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for BR's full-year earnings has moved 1.5% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, BR has returned 36.8% so far this year. At the same time, Business Services stocks have gained an average of 9.8%. This means that Broadridge Financial Solutions is performing better than its sector in terms of year-to-date returns.

Another Business Services stock, which has outperformed the sector so far this year, is FirstCash Holdings (FCFS - Free Report) . The stock has returned 10.4% year-to-date.

In FirstCash Holdings' case, the consensus EPS estimate for the current year increased 1.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Broadridge Financial Solutions belongs to the Outsourcing industry, which includes 13 individual stocks and currently sits at #76 in the Zacks Industry Rank. On average, this group has gained an average of 4.5% so far this year, meaning that BR is performing better in terms of year-to-date returns.

On the other hand, FirstCash Holdings belongs to the Financial Transaction Services industry. This 38-stock industry is currently ranked #160. The industry has moved +12.1% year to date.

Investors interested in the Business Services sector may want to keep a close eye on Broadridge Financial Solutions and FirstCash Holdings as they attempt to continue their solid performance.


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