Is uCloudlink Group (UCL) Outperforming Other Business Services Stocks This Year?

Zacks
19 Dec 2024

The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. uCloudlink Group Inc. Sponsored ADR (UCL) 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? By taking a look at the stock's year-to-date performance in comparison to its Business Services peers, we might be able to answer that question.

uCloudlink Group Inc. Sponsored ADR is a member of the Business Services sector. This group includes 305 individual stocks and currently holds a Zacks Sector Rank of #5. 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 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. uCloudlink Group Inc. Sponsored ADR is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for UCL's full-year earnings has moved 150% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, UCL has gained about 65.7% so far this year. At the same time, Business Services stocks have gained an average of 20.3%. This means that uCloudlink Group Inc. Sponsored ADR 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 Zeta Global Holdings (ZETA). The stock is up 119.3% year-to-date.

The consensus estimate for Zeta Global Holdings' current year EPS has increased 62.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, uCloudlink Group Inc. Sponsored ADR is a member of the Business - Information Services industry, which includes 10 individual companies and currently sits at #69 in the Zacks Industry Rank. On average, this group has gained an average of 14.4% so far this year, meaning that UCL is performing better in terms of year-to-date returns.

In contrast, Zeta Global Holdings falls under the Technology Services industry. Currently, this industry has 162 stocks and is ranked #63. Since the beginning of the year, the industry has moved +50.7%.

Investors with an interest in Business Services stocks should continue to track uCloudlink Group Inc. Sponsored ADR and Zeta Global Holdings. These stocks will be looking to continue their solid performance.

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