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Are Business Services Stocks Lagging Bright Horizons Family Solutions (BFAM) 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. Has Bright Horizons Family Solutions (BFAM - 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.

Bright Horizons Family Solutions is a member of the Business Services sector. This group includes 270 individual stocks and currently holds a Zacks Sector Rank of #4. 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 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. Bright Horizons Family Solutions is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for BFAM's full-year earnings has moved 1.7% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, BFAM has gained about 16.9% so far this year. In comparison, Business Services companies have returned an average of 2.5%. This means that Bright Horizons Family Solutions is outperforming the sector as a whole this year.

Another stock in the Business Services sector, Dave Inc. (DAVE - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 127%.

The consensus estimate for Dave Inc.'s current year EPS has increased 101.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Bright Horizons Family Solutions belongs to the Business - Services industry, which includes 26 individual stocks and currently sits at #39 in the Zacks Industry Rank. On average, this group has gained an average of 16.8% so far this year, meaning that BFAM is performing better in terms of year-to-date returns.

On the other hand, Dave Inc. belongs to the Technology Services industry. This 129-stock industry is currently ranked #51. The industry has moved +3% year to date.

Bright Horizons Family Solutions and Dave Inc. 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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