For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. CoreCard Corporation (CCRD) 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.
CoreCard Corporation is a member of our Business Services group, which includes 303 different companies and currently sits at #4 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. CoreCard Corporation is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for CCRD's full-year earnings has moved 4.2% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that CCRD has returned about 54.5% since the start of the calendar year. Meanwhile, the Business Services sector has returned an average of 36% on a year-to-date basis. This means that CoreCard Corporation is performing better than its sector in terms of year-to-date returns.
Another Business Services stock, which has outperformed the sector so far this year, is Dave Inc. (DAVE). The stock has returned 985.6% year-to-date.
Over the past three months, Dave Inc.'s consensus EPS estimate for the current year has increased 36.8%. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, CoreCard Corporation belongs to the Technology Services industry, which includes 162 individual stocks and currently sits at #54 in the Zacks Industry Rank. On average, this group has gained an average of 66.6% so far this year, meaning that CCRD is slightly underperforming its industry in terms of year-to-date returns. Dave Inc. is also part of the same industry.
Investors interested in the Business Services sector may want to keep a close eye on CoreCard Corporation and Dave Inc. as they attempt to continue their solid performance.
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