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Is FirstCash (FCFS) Outperforming Other Business Services Stocks 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. FirstCash Holdings (FCFS - 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? By taking a look at the stock's year-to-date performance in comparison to its Business Services peers, we might be able to answer that question.

FirstCash Holdings is one of 254 individual stocks in the Business Services sector. Collectively, these companies sit at #6 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 proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. FirstCash Holdings is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for FCFS' full-year earnings has moved 1.3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, FCFS has moved about 32.9% on a year-to-date basis. In comparison, Business Services companies have returned an average of -0.2%. This means that FirstCash Holdings is performing better than its sector in terms of year-to-date returns.

Another stock in the Business Services sector, GigaCloud Technology Inc. (GCT - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 70.1%.

Over the past three months, GigaCloud Technology Inc.'s consensus EPS estimate for the current year has increased 0.9%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, FirstCash Holdings belongs to the Financial Transaction Services industry, a group that includes 34 individual stocks and currently sits at #62 in the Zacks Industry Rank. Stocks in this group have gained about 5.3% so far this year, so FCFS is performing better this group in terms of year-to-date returns.

GigaCloud Technology Inc., however, belongs to the Technology Services industry. Currently, this 119-stock industry is ranked #93. The industry has moved +14.3% so far this year.

Investors with an interest in Business Services stocks should continue to track FirstCash Holdings and GigaCloud Technology Inc.. These stocks will be looking to continue their solid performance.


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