Investors focused on the Business Services space have likely heard of Paychex (PAYX - Free Report) , but is the stock performing well in comparison to the rest of its sector peers? Let's take a closer look at the stock's year-to-date performance to find out.
Paychex is a member of our Business Services group, which includes 191 different companies and currently sits at #4 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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. PAYX is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for PAYX's full-year earnings has moved 0.68% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, PAYX has moved about 32.19% on a year-to-date basis. In comparison, Business Services companies have returned an average of 31.62%. This means that Paychex is performing better than its sector in terms of year-to-date returns.
Looking more specifically, PAYX belongs to the Outsourcing industry, which includes 15 individual stocks and currently sits at #105 in the Zacks Industry Rank. Stocks in this group have gained about 31.60% so far this year, so PAYX is performing better this group in terms of year-to-date returns.
PAYX will likely be looking to continue its solid performance, so investors interested in Business Services stocks should continue to pay close attention to the company.