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Is ADEIA INC (ADEA) 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. Has Adeia (ADEA - 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.

Adeia is one of 255 individual stocks in the Business Services sector. Collectively, these companies sit at #5 in the Zacks Sector Rank. 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 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 #1 (Strong Buy).

The Zacks Consensus Estimate for ADEA's full-year earnings has moved 5.4% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, ADEA has gained about 0.6% so far this year. In comparison, Business Services companies have returned an average of -1.2%. 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 Alithya Group (ALYAF - Free Report) . The stock is up 72.3% year-to-date.

For Alithya Group, the consensus EPS estimate for the current year has increased 8.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Adeia belongs to the Technology Services industry, a group that includes 119 individual companies and currently sits at #94 in the Zacks Industry Rank. This group has gained an average of 18.8% so far this year, so ADEA is slightly underperforming its industry in this area. Alithya Group is also part of the same industry.

Investors with an interest in Business Services stocks should continue to track Adeia and Alithya Group. These stocks will be looking to continue their solid performance.


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