Back to top

Image: Bigstock

Is Cap Gemini (CGEMY) Stock Outpacing Its Business Services Peers This Year?

Read MoreHide Full Article

The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Cap Gemini SA (CGEMY - Free Report) 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? 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.

Cap Gemini SA is a member of the Business Services sector. This group includes 271 individual stocks and currently holds a Zacks Sector Rank of #4. 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 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. Cap Gemini SA is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for CGEMY's full-year earnings has moved 5.1% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that CGEMY has returned about 9.2% since the start of the calendar year. In comparison, Business Services companies have returned an average of 5%. This means that Cap Gemini SA is performing better than its sector in terms of year-to-date returns.

One other Business Services stock that has outperformed the sector so far this year is Mitie Group PLC. (MITFY - Free Report) . The stock is up 42.2% year-to-date.

In Mitie Group PLC.'s case, the consensus EPS estimate for the current year increased 4.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Cap Gemini SA is a member of the Outsourcing industry, which includes 9 individual companies and currently sits at #40 in the Zacks Industry Rank. On average, stocks in this group have lost 60.5% this year, meaning that CGEMY is performing better in terms of year-to-date returns.

In contrast, Mitie Group PLC. falls under the Business - Services industry. Currently, this industry has 26 stocks and is ranked #68. Since the beginning of the year, the industry has moved +17.6%.

Going forward, investors interested in Business Services stocks should continue to pay close attention to Cap Gemini SA and Mitie Group PLC. as they could maintain their solid performance.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Cap Gemini SA (CGEMY) - free report >>

Mitie Group PLC. (MITFY) - free report >>

Published in