For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Gambling.com Group Limited (GAMB) 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.
Gambling.com Group Limited is one of 304 companies in the Business Services group. The Business Services group currently sits at #5 within 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Gambling.com Group Limited is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for GAMB's full-year earnings has moved 10.6% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, GAMB has gained about 32.4% so far this year. In comparison, Business Services companies have returned an average of 22.3%. This means that Gambling.com Group Limited is performing better than its sector in terms of year-to-date returns.
One other Business Services stock that has outperformed the sector so far this year is Lesaka Technologies (LSAK). The stock is up 63.6% year-to-date.
In Lesaka Technologies' case, the consensus EPS estimate for the current year increased 11.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Gambling.com Group Limited is a member of the Advertising and Marketing industry, which includes 16 individual companies and currently sits at #187 in the Zacks Industry Rank. On average, stocks in this group have gained 2% this year, meaning that GAMB is performing better in terms of year-to-date returns.
On the other hand, Lesaka Technologies belongs to the Technology Services industry. This 162-stock industry is currently ranked #69. The industry has moved +31.2% year to date.
Investors interested in the Business Services sector may want to keep a close eye on Gambling.com Group Limited and Lesaka Technologies as they attempt to continue their solid performance.
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