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Is Affirm (AFRM) Outperforming Other Business Services Stocks 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 Affirm Holdings (AFRM - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Affirm Holdings is one of 317 individual stocks in the Business Services sector. Collectively, these companies sit at #8 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 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. Affirm Holdings is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for AFRM's full-year earnings has moved 68.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, AFRM has gained about 102.3% so far this year. In comparison, Business Services companies have returned an average of 5.7%. This shows that Affirm Holdings is outperforming its peers so far this year.

Another Business Services stock, which has outperformed the sector so far this year, is Marvell Technology (MRVL - Free Report) . The stock has returned 33.6% year-to-date.

The consensus estimate for Marvell Technology's current year EPS has increased 2.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Affirm Holdings is a member of the Business - Services industry, which includes 23 individual companies and currently sits at #148 in the Zacks Industry Rank. Stocks in this group have lost about 2.9% so far this year, so AFRM is performing better this group in terms of year-to-date returns.

In contrast, Marvell Technology falls under the Technology Services industry. Currently, this industry has 177 stocks and is ranked #95. Since the beginning of the year, the industry has moved +24.4%.

Affirm Holdings and Marvell Technology could continue their solid performance, so investors interested in Business Services stocks should continue to pay close attention to these stocks.

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