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 Youdao, Inc. Unsponsored (DAO - 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.
Youdao, Inc. Unsponsored is a member of the Business Services sector. This group includes 189 individual stocks and currently holds a Zacks Sector Rank of #8. 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. DAO is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for DAO's full-year earnings has moved 19.47% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, DAO has moved about 36.86% on a year-to-date basis. At the same time, Business Services stocks have lost an average of 19.37%. This means that Youdao, Inc. Unsponsored is performing better than its sector in terms of year-to-date returns.
Breaking things down more, DAO is a member of the Technology Services industry, which includes 54 individual companies and currently sits at #87 in the Zacks Industry Rank. Stocks in this group have lost about 10.04% so far this year, so DAO is performing better this group in terms of year-to-date returns.
DAO 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.