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Are Business Services Stocks Lagging AppLovin (APP) 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. AppLovin (APP - 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? Let's take a closer look at the stock's year-to-date performance to find out.

AppLovin is one of 315 individual stocks in the Business Services sector. Collectively, these companies sit at #5 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 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. AppLovin is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for APP's full-year earnings has moved 57.3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, APP has moved about 59.2% on a year-to-date basis. Meanwhile, stocks in the Business Services group have gained about 10.7% on average. As we can see, AppLovin is performing better than its sector in the calendar year.

Another stock in the Business Services sector, Booz Allen Hamilton (BAH - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 15%.

For Booz Allen Hamilton, the consensus EPS estimate for the current year has increased 7.7% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, AppLovin belongs to the Technology Services industry, a group that includes 174 individual stocks and currently sits at #86 in the Zacks Industry Rank. On average, this group has gained an average of 17.9% so far this year, meaning that APP is performing better in terms of year-to-date returns.

On the other hand, Booz Allen Hamilton belongs to the Government Services industry. This 3-stock industry is currently ranked #2. The industry has moved +12.7% year to date.

Investors interested in the Business Services sector may want to keep a close eye on AppLovin and Booz Allen Hamilton as they attempt to continue their solid performance.


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