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Is DocuSign (DOCU) Outperforming Other Business Services Stocks This Year?

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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 DocuSign (DOCU - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

DocuSign is one of 313 companies in the Business Services group. The Business Services group currently sits at #5 within 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. DocuSign is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for DOCU's full-year earnings has moved 44% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that DOCU has returned about 2.5% since the start of the calendar year. At the same time, Business Services stocks have gained an average of 1.3%. This means that DocuSign is outperforming the sector as a whole this year.

Another stock in the Business Services sector, Fiserv (FI - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 6.8%.

In Fiserv's case, the consensus EPS estimate for the current year increased 0.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, DocuSign belongs to the Technology Services industry, which includes 174 individual stocks and currently sits at #81 in the Zacks Industry Rank. On average, this group has lost an average of 3.3% so far this year, meaning that DOCU is performing better in terms of year-to-date returns.

On the other hand, Fiserv belongs to the Financial Transaction Services industry. This 38-stock industry is currently ranked #104. The industry has moved +4.5% year to date.

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


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