Back to top

Image: Bigstock

Are Business Services Stocks Lagging AppLovin (APP) This Year?

Read MoreHide Full Article

The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is AppLovin (APP - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Business Services peers, we might be able to answer that question.

AppLovin is one of 315 companies in the Business Services group. The Business Services group currently sits at #6 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 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. AppLovin is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for APP's full-year earnings has moved 57.4% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, APP has moved about 78.4% on a year-to-date basis. Meanwhile, the Business Services sector has returned an average of 8.7% on a year-to-date basis. This means that AppLovin is outperforming the sector as a whole this year.

One other Business Services stock that has outperformed the sector so far this year is Booz Allen Hamilton (BAH - Free Report) . The stock is up 15.1% year-to-date.

The consensus estimate for Booz Allen Hamilton's current year EPS has increased 7.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, AppLovin is a member of the Technology Services industry, which includes 174 individual companies and currently sits at #77 in the Zacks Industry Rank. On average, stocks in this group have gained 16.5% this year, meaning that APP is performing better in terms of year-to-date returns.

Booz Allen Hamilton, however, belongs to the Government Services industry. Currently, this 3-stock industry is ranked #28. The industry has moved +11.2% so far this year.

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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Booz Allen Hamilton Holding Corporation (BAH) - free report >>

AppLovin Corporation (APP) - free report >>

Published in