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Is Cap Gemini (CGEMY) Stock Outpacing Its Business Services Peers 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. Is Cap Gemini SA (CGEMY - 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.

Cap Gemini SA is one of 313 companies in the Business Services group. The Business Services group currently sits at #6 within 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. Cap Gemini SA is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for CGEMY's full-year earnings has moved 0.2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, CGEMY has moved about 6.3% on a year-to-date basis. Meanwhile, the Business Services sector has returned an average of 3.9% on a year-to-date basis. This means that Cap Gemini SA 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 Credo Technology Group Holding Ltd. (CRDO - Free Report) . The stock has returned 7.8% year-to-date.

Over the past three months, Credo Technology Group Holding Ltd.'s consensus EPS estimate for the current year has increased 17.8%. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Cap Gemini SA belongs to the Outsourcing industry, a group that includes 11 individual companies and currently sits at #54 in the Zacks Industry Rank. Stocks in this group have gained about 3.6% so far this year, so CGEMY is performing better this group in terms of year-to-date returns.

Credo Technology Group Holding Ltd. however, belongs to the Technology Services industry. Currently, this 174-stock industry is ranked #92. The industry has moved +2% so far this year.

Going forward, investors interested in Business Services stocks should continue to pay close attention to Cap Gemini SA and Credo Technology Group Holding Ltd. as they could maintain their solid performance.


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