For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Yext (YEXT - 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 YEXT and the rest of the Business Services group's stocks.
Yext is a member of the Business Services sector. This group includes 195 individual stocks and currently holds a Zacks Sector Rank of #11. 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. YEXT is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for YEXT's full-year earnings has moved 5.70% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, YEXT has moved about 11.37% on a year-to-date basis. At the same time, Business Services stocks have lost an average of 4.36%. This means that Yext is outperforming the sector as a whole this year.
Breaking things down more, YEXT is a member of the Technology Services industry, which includes 61 individual companies and currently sits at #91 in the Zacks Industry Rank. This group has gained an average of 18.98% so far this year, so YEXT is slightly underperforming its industry in this area.
Investors in the Business Services sector will want to keep a close eye on YEXT as it attempts to continue its solid performance.