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Is Adecco (AHEXY) Stock Outpacing Its Business Services Peers This Year?

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Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Has Adecco SA (AHEXY - Free Report) been one of those stocks this year? 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.

Adecco SA is one of 253 companies in the Business Services group. The Business Services group currently sits at #4 within 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 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. Adecco SA is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for AHEXY's full-year earnings has moved 5% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, AHEXY has returned 16% so far this year. At the same time, Business Services stocks have gained an average of 1.1%. This shows that Adecco SA is outperforming its peers so far this year.

PagSeguro Digital Ltd. (PAGS - 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 52.1%.

Over the past three months, PagSeguro Digital Ltd.'s consensus EPS estimate for the current year has increased 3.2%. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Adecco SA is a member of the Outsourcing industry, which includes 7 individual companies and currently sits at #26 in the Zacks Industry Rank. On average, this group has lost an average of 3.8% so far this year, meaning that AHEXY is performing better in terms of year-to-date returns.

PagSeguro Digital Ltd., however, belongs to the Financial Transaction Services industry. Currently, this 34-stock industry is ranked #56. The industry has moved +2.9% so far this year.

Adecco SA and PagSeguro Digital 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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