The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Information Services Group (III) 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.
Information Services Group is a member of the Business Services sector. This group includes 272 individual stocks and currently holds a Zacks Sector Rank of #7. 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. Information Services Group is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for III's full-year earnings has moved 4.4% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, III has moved about 6% on a year-to-date basis. At the same time, Business Services stocks have lost an average of 6.4%. As we can see, Information Services Group is performing better than its sector in the calendar year.
One other Business Services stock that has outperformed the sector so far this year is OppFi Inc. (OPFI). The stock is up 8.8% year-to-date.
The consensus estimate for OppFi Inc.'s current year EPS has increased 10.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Information Services Group belongs to the Consulting Services industry, a group that includes 13 individual stocks and currently sits at #37 in the Zacks Industry Rank. On average, this group has lost an average of 14.4% so far this year, meaning that III is performing better in terms of year-to-date returns.
In contrast, OppFi Inc. falls under the Financial Transaction Services industry. Currently, this industry has 36 stocks and is ranked #135. Since the beginning of the year, the industry has moved -4.5%.
Investors interested in the Business Services sector may want to keep a close eye on Information Services Group and OppFi Inc. as they attempt to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).
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