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Are Business Services Stocks Lagging ADEIA INC (ADEA) 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. Adeia (ADEA - 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.

Adeia is one of 271 companies in the Business Services group. The Business Services group currently sits at #3 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 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. Adeia is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for ADEA's full-year earnings has moved 1.5% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, ADEA has returned 1.9% so far this year. Meanwhile, the Business Services sector has returned an average of 1.3% on a year-to-date basis. This shows that Adeia is outperforming its peers so far this year.

One other Business Services stock that has outperformed the sector so far this year is Arbe Robotics Ltd. (ARBE - Free Report) . The stock is up 3.8% year-to-date.

For Arbe Robotics Ltd., the consensus EPS estimate for the current year has increased 5.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Adeia belongs to the Technology Services industry, a group that includes 130 individual stocks and currently sits at #39 in the Zacks Industry Rank. This group has gained an average of 5.8% so far this year, so ADEA is slightly underperforming its industry in this area. Arbe Robotics Ltd. is also part of the same industry.

Going forward, investors interested in Business Services stocks should continue to pay close attention to Adeia and Arbe Robotics Ltd. as they could maintain their solid performance.


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