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Is Envestnet (ENV) Stock Outpacing Its Business Services Peers 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. Envestnet 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.

Envestnet is one of 306 companies in the Business Services group. The Business Services group currently sits at #4 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 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. Envestnet is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for ENV's full-year earnings has moved 2% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, ENV has moved about 27.1% on a year-to-date basis. In comparison, Business Services companies have returned an average of 24.7%. This shows that Envestnet is outperforming its peers so far this year.

Another stock in the Business Services sector, Genpact (G - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 29%.

For Genpact, the consensus EPS estimate for the current year has increased 3.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Envestnet belongs to the Financial Transaction Services industry, a group that includes 43 individual stocks and currently sits at #68 in the Zacks Industry Rank. On average, stocks in this group have gained 21.8% this year, meaning that ENV is performing better in terms of year-to-date returns.

On the other hand, Genpact belongs to the Outsourcing industry. This 12-stock industry is currently ranked #225. The industry has moved +25% year to date.

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


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