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Are Business Services Stocks Lagging Paymentus (PAY) This Year?

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Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Paymentus (PAY - 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.

Paymentus is a member of our Business Services group, which includes 315 different companies and currently sits at #5 in the Zacks Sector Rank. 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 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. Paymentus is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for PAY's full-year earnings has moved 27.3% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that PAY has returned about 32.3% since the start of the calendar year. At the same time, Business Services stocks have gained an average of 9.8%. This means that Paymentus is outperforming the sector as a whole this year.

Spotify (SPOT - Free Report) is another Business Services stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 41%.

In Spotify's case, the consensus EPS estimate for the current year increased 45.7% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Paymentus belongs to the Technology Services industry, which includes 174 individual stocks and currently sits at #88 in the Zacks Industry Rank. This group has gained an average of 17.3% so far this year, so PAY is performing better in this area. Spotify is also part of the same industry.

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


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