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Is FirstCash (FCFS) 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 FirstCash Holdings (FCFS - Free Report) one of those stocks right now? 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.

FirstCash Holdings is a member of our Business Services group, which includes 234 different companies and currently sits at #9 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 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. FirstCash Holdings is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for FCFS' full-year earnings has moved 8.7% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that FCFS has returned about 36.4% since the start of the calendar year. Meanwhile, the Business Services sector has returned an average of -10.4% on a year-to-date basis. This means that FirstCash Holdings is outperforming the sector as a whole this year.

Teads Holding Co. (TEAD - 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 13.7%.

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

Looking more specifically, FirstCash Holdings belongs to the Financial Transaction Services industry, which includes 36 individual stocks and currently sits at #90 in the Zacks Industry Rank. This group has lost an average of 16.6% so far this year, so FCFS is performing better in this area.

In contrast, Teads Holding Co. falls under the Advertising and Marketing industry. Currently, this industry has 15 stocks and is ranked #43. Since the beginning of the year, the industry has moved -11.2%.

Investors interested in the Business Services sector may want to keep a close eye on FirstCash Holdings and Teads Holding Co. as they attempt to continue their solid performance.

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