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Has Paychex (PAYX) Outpaced 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. Paychex (PAYX - 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 PAYX and the rest of the Business Services group's stocks.

Paychex is one of 194 individual stocks in the Business Services sector. Collectively, these companies sit at #7 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

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

The Zacks Consensus Estimate for PAYX's full-year earnings has moved 0.70% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, PAYX has moved about 27.55% on a year-to-date basis. At the same time, Business Services stocks have gained an average of 24.44%. This means that Paychex is outperforming the sector as a whole this year.

To break things down more, PAYX belongs to the Outsourcing industry, a group that includes 15 individual companies and currently sits at #91 in the Zacks Industry Rank. On average, stocks in this group have gained 23.58% this year, meaning that PAYX is performing better in terms of year-to-date returns.

Investors in the Business Services sector will want to keep a close eye on PAYX as it attempts to continue its solid performance.


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