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Is AppLovin (APP) Stock Outpacing Its Business Services Peers This Year?

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The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. AppLovin (APP - 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.

AppLovin is a member of our Business Services group, which includes 271 different companies and currently sits at #4 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 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. AppLovin is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for APP's full-year earnings has moved 22.4% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, APP has gained about 12.6% so far this year. Meanwhile, stocks in the Business Services group have gained about 1.7% on average. This shows that AppLovin is outperforming its peers so far this year.

Another stock in the Business Services sector, Alithya Group (ALYAF - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 55.6%.

Over the past three months, Alithya Group's consensus EPS estimate for the current year has increased 81.5%. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, AppLovin is a member of the Technology Services industry, which includes 130 individual companies and currently sits at #42 in the Zacks Industry Rank. On average, this group has gained an average of 3.7% so far this year, meaning that APP is performing better in terms of year-to-date returns. Alithya Group is also part of the same industry.

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

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