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Is Rollins (ROL) Stock Outpacing Its Business Services Peers 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 Rollins (ROL - 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.

Rollins is one of 258 individual stocks in the Business Services sector. Collectively, these companies sit at #5 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Rollins is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for ROL's full-year earnings has moved 0.5% 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, ROL has gained about 25.3% so far this year. Meanwhile, stocks in the Business Services group have gained about 2.6% on average. This means that Rollins is performing better than its sector in terms of year-to-date returns.

Sims Metal Management Ltd. (SMSMY - 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 42.8%.

In Sims Metal Management Ltd.'s case, the consensus EPS estimate for the current year increased 12.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Rollins is a member of the Building Products - Maintenance Service industry, which includes 2 individual companies and currently sits at #15 in the Zacks Industry Rank. Stocks in this group have gained about 26.7% so far this year, so ROL is slightly underperforming its industry this group in terms of year-to-date returns.

Sims Metal Management Ltd., however, belongs to the Waste Removal Services industry. Currently, this 22-stock industry is ranked #94. The industry has moved +10.7% so far this year.

Rollins and Sims Metal Management Ltd. 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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