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Is Maximus (MMS) 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. Maximus (MMS - 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.

Maximus is a member of our Business Services group, which includes 260 different companies and currently sits at #6 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

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. Maximus is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for MMS' full-year earnings has moved 12.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that MMS has returned about 17.3% since the start of the calendar year. Meanwhile, stocks in the Business Services group have lost about 7.2% on average. This shows that Maximus is outperforming its peers so far this year.

Nomura Research Institute (NRILY - 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 28.8%.

Over the past three months, Nomura Research Institute's consensus EPS estimate for the current year has increased 0.8%. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Maximus is a member of the Government Services industry, which includes 3 individual companies and currently sits at #33 in the Zacks Industry Rank. This group has lost an average of 13.8% so far this year, so MMS is performing better in this area.

On the other hand, Nomura Research Institute belongs to the Technology Services industry. This 125-stock industry is currently ranked #58. The industry has moved +31.4% year to date.

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


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