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Is Montrose Environmental Group (MEG) 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. Montrose Environmental (MEG - 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? Let's take a closer look at the stock's year-to-date performance to find out.

Montrose Environmental is a member of the Business Services sector. This group includes 262 individual stocks and currently holds a Zacks Sector Rank of #7. 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. Montrose Environmental is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for MEG's full-year earnings has moved 144.4% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, MEG has moved about 53.1% on a year-to-date basis. At the same time, Business Services stocks have lost an average of 1.3%. This means that Montrose Environmental is outperforming the sector as a whole this year.

One other Business Services stock that has outperformed the sector so far this year is Maximus (MMS - Free Report) . The stock is up 21.9% year-to-date.

The consensus estimate for Maximus' current year EPS has increased 12.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Montrose Environmental is a member of the Waste Removal Services industry, which includes 23 individual companies and currently sits at #197 in the Zacks Industry Rank. On average, this group has gained an average of 7.8% so far this year, meaning that MEG is performing better in terms of year-to-date returns.

On the other hand, Maximus belongs to the Government Services industry. This 3-stock industry is currently ranked #9. The industry has moved -7.9% year to date.

Going forward, investors interested in Business Services stocks should continue to pay close attention to Montrose Environmental and Maximus as they could maintain their solid performance.


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