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Is Sims Metal Management (SMSMY) Outperforming Other Business Services Stocks 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. Is Sims Metal Management Ltd. (SMSMY - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Sims Metal Management Ltd. is a member of our Business Services group, which includes 258 different companies and currently sits at #5 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 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. Sims Metal Management Ltd. is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for SMSMY's full-year earnings has moved 33.3% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, SMSMY has returned 46.9% so far this year. At the same time, Business Services stocks have lost an average of 9.4%. This shows that Sims Metal Management Ltd. is outperforming its peers so far this year.

UL Solutions Inc. (ULS - 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 80.8%.

The consensus estimate for UL Solutions Inc.'s current year EPS has increased 5.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Sims Metal Management Ltd. belongs to the Waste Removal Services industry, a group that includes 22 individual stocks and currently sits at #98 in the Zacks Industry Rank. This group has gained an average of 1.7% so far this year, so SMSMY is performing better in this area.

In contrast, UL Solutions Inc. falls under the Business - Services industry. Currently, this industry has 27 stocks and is ranked #67. Since the beginning of the year, the industry has moved -9.5%.

Going forward, investors interested in Business Services stocks should continue to pay close attention to Sims Metal Management Ltd. and UL Solutions Inc. as they could maintain their solid performance.


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