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Is GDS Holdings (GDS) Outperforming Other Business Services Stocks 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 GDS Holdings (GDS - Free Report) one of those stocks right now? 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.

GDS Holdings is one of 270 individual stocks in the Business Services sector. Collectively, these companies sit at #3 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. GDS Holdings is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for GDS' full-year earnings has moved 10.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, GDS has moved about 14% on a year-to-date basis. Meanwhile, the Business Services sector has returned an average of 5.2% on a year-to-date basis. This shows that GDS Holdings is outperforming its peers so far this year.

Healthcare Services (HCSG - 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 26.3%.

The consensus estimate for Healthcare Services' current year EPS has increased 8.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, GDS Holdings is a member of the Technology Services industry, which includes 129 individual companies and currently sits at #48 in the Zacks Industry Rank. On average, this group has gained an average of 5.1% so far this year, meaning that GDS is performing better in terms of year-to-date returns.

In contrast, Healthcare Services falls under the Business - Services industry. Currently, this industry has 26 stocks and is ranked #40. Since the beginning of the year, the industry has moved +17.1%.

GDS Holdings and Healthcare Services could continue their solid performance, so investors interested in Business Services stocks should continue to pay close attention to these stocks.


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