Is Brookfield Business Partners (BBU) Outperforming Other Business Services Stocks This Year?

Zacks
2024-12-03

For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Brookfield Business Partners L.P. (BBU) 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? Let's take a closer look at the stock's year-to-date performance to find out.

Brookfield Business Partners L.P. is one of 305 individual stocks in the Business Services sector. Collectively, these companies sit 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 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. Brookfield Business Partners L.P. is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for BBU's full-year earnings has moved 20.3% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that BBU has returned about 26.6% since the start of the calendar year. At the same time, Business Services stocks have gained an average of 25.3%. This means that Brookfield Business Partners L.P. is outperforming the sector as a whole this year.

Klaviyo, Inc. (KVYO) is another Business Services stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 34.2%.

The consensus estimate for Klaviyo, Inc.'s current year EPS has increased 343.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Brookfield Business Partners L.P. is a member of the Business - Services industry, which includes 24 individual companies and currently sits at #75 in the Zacks Industry Rank. On average, stocks in this group have lost 2.9% this year, meaning that BBU is performing better in terms of year-to-date returns.

On the other hand, Klaviyo, Inc. belongs to the Technology Services industry. This 162-stock industry is currently ranked #56. The industry has moved +55.1% year to date.

Investors with an interest in Business Services stocks should continue to track Brookfield Business Partners L.P. and Klaviyo, Inc. These stocks will be looking to continue their solid performance.

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