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Is AppLovin (APP) Stock Outpacing Its Business Services Peers 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. Has AppLovin (APP - Free Report) been one of those stocks this year? 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.

AppLovin is one of 315 companies in the Business Services group. The Business Services group currently sits at #4 within 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 is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. 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 89.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, APP has returned 116.9% so far this year. In comparison, Business Services companies have returned an average of 6.3%. This shows that AppLovin is outperforming its peers so far this year.

Another stock in the Business Services sector, Coherent (COHR - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 23.3%.

For Coherent, the consensus EPS estimate for the current year has increased 23.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, AppLovin belongs to the Technology Services industry, which includes 173 individual stocks and currently sits at #72 in the Zacks Industry Rank. On average, this group has gained an average of 13.2% so far this year, meaning that APP is performing better in terms of year-to-date returns. Coherent is also part of the same industry.

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


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