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

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For those looking to find strong Business Services stocks, it is prudent to search for companies in the group 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 288 companies in the Business Services group. The Business Services group currently sits at #9 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

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. 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 19.2% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, APP has gained about 52.6% so far this year. In comparison, Business Services companies have returned an average of 20.8%. As we can see, AppLovin is performing better than its sector in the calendar year.

Palantir Technologies Inc. (PLTR - 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 48.2%.

The consensus estimate for Palantir Technologies Inc.'s current year EPS has increased 5.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, AppLovin belongs to the Technology Services industry, a group that includes 152 individual stocks and currently sits at #89 in the Zacks Industry Rank. On average, this group has gained an average of 42% so far this year, meaning that APP is performing better in terms of year-to-date returns. Palantir Technologies Inc. is also part of the same industry.

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


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