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Is Green Dot (GDOT) 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. Has Green Dot (GDOT - 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.

Green Dot is one of 257 companies in the Business Services group. The Business Services group currently sits at #5 within 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. Green Dot is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for GDOT's full-year earnings has moved 3.8% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, GDOT has returned 20.5% so far this year. Meanwhile, stocks in the Business Services group have lost about 8.7% on average. This means that Green Dot is outperforming the sector as a whole this year.

Another Business Services stock, which has outperformed the sector so far this year, is Rentokil Initial PLC (RTO - Free Report) . The stock has returned 13.3% year-to-date.

Over the past three months, Rentokil Initial PLC's consensus EPS estimate for the current year has increased 0.3%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Green Dot belongs to the Financial Transaction Services industry, a group that includes 34 individual stocks and currently sits at #165 in the Zacks Industry Rank. On average, this group has lost an average of 8.6% so far this year, meaning that GDOT is performing better in terms of year-to-date returns.

Rentokil Initial PLC, however, belongs to the Business - Services industry. Currently, this 26-stock industry is ranked #44. The industry has moved -11.8% so far this year.

Going forward, investors interested in Business Services stocks should continue to pay close attention to Green Dot and Rentokil Initial PLC as they could maintain their solid performance.


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