Are Business Services Stocks Lagging Futu Holdings (FUTU) This Year?

Zacks
2024-11-06

For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Futu Holdings Limited Sponsored ADR (FUTU) 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question.

Futu Holdings Limited Sponsored ADR is a member of our Business Services group, which includes 308 different companies and currently sits at #6 in the Zacks Sector Rank. 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 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. Futu Holdings Limited Sponsored ADR is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for FUTU's full-year earnings has moved 3.5% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, FUTU has returned 81.4% so far this year. Meanwhile, the Business Services sector has returned an average of 20.1% on a year-to-date basis. This means that Futu Holdings Limited Sponsored ADR is outperforming the sector as a whole this year.

ICF International (ICFI) is another Business Services stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 27.5%.

The consensus estimate for ICF International's current year EPS has increased 4.8% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Futu Holdings Limited Sponsored ADR belongs to the Technology Services industry, a group that includes 165 individual companies and currently sits at #84 in the Zacks Industry Rank. On average, stocks in this group have gained 39.8% this year, meaning that FUTU is performing better in terms of year-to-date returns.

On the other hand, ICF International belongs to the Government Services industry. This 3-stock industry is currently ranked #1. The industry has moved +12.9% year to date.

Going forward, investors interested in Business Services stocks should continue to pay close attention to Futu Holdings Limited Sponsored ADR and ICF International as they could maintain their solid performance.

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