The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Cardtronics (CATM - 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 CATM and the rest of the Business Services group's stocks.
Cardtronics is one of 191 companies in the Business Services group. The Business Services group currently sits at #5 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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. CATM is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for CATM's full-year earnings has moved 3.54% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, CATM has returned 48.04% so far this year. Meanwhile, the Business Services sector has returned an average of 24.78% on a year-to-date basis. This means that Cardtronics is outperforming the sector as a whole this year.
Breaking things down more, CATM is a member of the Financial Transaction Services industry, which includes 25 individual companies and currently sits at #72 in the Zacks Industry Rank. Stocks in this group have gained about 37.37% so far this year, so CATM is performing better this group in terms of year-to-date returns.
Going forward, investors interested in Business Services stocks should continue to pay close attention to CATM as it looks to continue its solid performance.