Are Business Services Stocks Lagging Cintas (CTAS) This Year?

Zacks
25 Feb

Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Cintas (CTAS) 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.

Cintas is one of 288 companies in the Business Services group. The Business Services group currently sits at #9 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 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. Cintas is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for CTAS' full-year earnings has moved 2% 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, CTAS has gained about 11.3% so far this year. Meanwhile, stocks in the Business Services group have gained about 7.2% on average. This means that Cintas is outperforming the sector as a whole this year.

One other Business Services stock that has outperformed the sector so far this year is Gorilla Technology Group Inc. (GRRR). The stock is up 36.3% year-to-date.

Over the past three months, Gorilla Technology Group Inc.'s consensus EPS estimate for the current year has increased 12%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Cintas belongs to the Business - Services industry, a group that includes 24 individual stocks and currently sits at #129 in the Zacks Industry Rank. On average, this group has gained an average of 6% so far this year, meaning that CTAS is performing better in terms of year-to-date returns.

In contrast, Gorilla Technology Group Inc. falls under the Technology Services industry. Currently, this industry has 152 stocks and is ranked #76. Since the beginning of the year, the industry has moved +11.4%.

Cintas and Gorilla Technology Group Inc. could continue their solid performance, so investors interested in Business Services stocks should continue to pay close attention to these stocks.

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This article originally published on Zacks Investment Research (zacks.com).

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