Has GDS Holdings (GDS) Outpaced Other Business Services Stocks This Year?

Zacks
24 Dec 2024

Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Has GDS Holdings (GDS) been one of those stocks this year? 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.

GDS Holdings is one of 305 companies in the Business Services group. The Business Services group currently sits at #4 within 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 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. GDS Holdings is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for GDS' full-year earnings has moved 17.8% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that GDS has returned about 115.8% since the start of the calendar year. At the same time, Business Services stocks have gained an average of 22.1%. As we can see, GDS Holdings is performing better than its sector in the calendar year.

Another Business Services stock, which has outperformed the sector so far this year, is Sezzle Inc. (SEZL). The stock has returned 1196.2% year-to-date.

For Sezzle Inc. the consensus EPS estimate for the current year has increased 46.8% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, GDS Holdings belongs to the Technology Services industry, a group that includes 162 individual stocks and currently sits at #58 in the Zacks Industry Rank. This group has gained an average of 56.7% so far this year, so GDS is performing better in this area.

In contrast, Sezzle Inc. falls under the Financial Transaction Services industry. Currently, this industry has 42 stocks and is ranked #75. Since the beginning of the year, the industry has moved +23%.

Investors with an interest in Business Services stocks should continue to track GDS Holdings and Sezzle Inc. These stocks will be looking to continue their solid performance.

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