For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Tessera Holding (XPER - 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? One simple way to answer this question is to take a look at the year-to-date performance of XPER and the rest of the Business Services group's stocks.
Tessera Holding is a member of our Business Services group, which includes 192 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 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. XPER is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for XPER's full-year earnings has moved 47.24% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, XPER has gained about 9.84% so far this year. In comparison, Business Services companies have returned an average of 5.01%. This means that Tessera Holding is outperforming the sector as a whole this year.
To break things down more, XPER belongs to the Technology Services industry, a group that includes 52 individual companies and currently sits at #103 in the Zacks Industry Rank. Stocks in this group have gained about 11.59% so far this year, so XPER is slightly underperforming its industry this group in terms of year-to-date returns.
Going forward, investors interested in Business Services stocks should continue to pay close attention to XPER as it looks to continue its solid performance.