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Is Confluent (CFLT) 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. Confluent (CFLT - 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question.

Confluent is a member of the Business Services sector. This group includes 313 individual stocks and currently holds a Zacks Sector Rank of #7. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

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. Confluent is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for CFLT's full-year earnings has moved 0.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, CFLT has moved about 39.2% on a year-to-date basis. In comparison, Business Services companies have returned an average of 5.2%. As we can see, Confluent is performing better than its sector in the calendar year.

One other Business Services stock that has outperformed the sector so far this year is Elastic (ESTC - Free Report) . The stock is up 12.3% year-to-date.

For Elastic, the consensus EPS estimate for the current year has increased 10.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Confluent belongs to the Technology Services industry, a group that includes 174 individual companies and currently sits at #91 in the Zacks Industry Rank. On average, stocks in this group have gained 8% this year, meaning that CFLT is performing better in terms of year-to-date returns. Elastic is also part of the same industry.

Confluent and Elastic 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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Elastic N.V. (ESTC) - free report >>

Confluent, Inc. (CFLT) - free report >>

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