Is Amadeus IT Group (AMADY) Outperforming Other Business Services Stocks This Year?

Zacks
27 Mar

The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Amadeus IT Group SA Unsponsored ADR (AMADY) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Amadeus IT Group SA Unsponsored ADR is one of 289 individual stocks in the Business Services sector. Collectively, these companies sit at #8 in 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 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. Amadeus IT Group SA Unsponsored ADR is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for AMADY's full-year earnings has moved 1.7% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, AMADY has returned 12.5% so far this year. Meanwhile, the Business Services sector has returned an average of 1.5% on a year-to-date basis. As we can see, Amadeus IT Group SA Unsponsored ADR is performing better than its sector in the calendar year.

Another Business Services stock, which has outperformed the sector so far this year, is Aris Water Solutions, Inc. (ARIS). The stock has returned 36.3% year-to-date.

Over the past three months, Aris Water Solutions, Inc.'s consensus EPS estimate for the current year has increased 1.4%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Amadeus IT Group SA Unsponsored ADR belongs to the Technology Services industry, a group that includes 151 individual stocks and currently sits at #66 in the Zacks Industry Rank. Stocks in this group have lost about 6.1% so far this year, so AMADY is performing better this group in terms of year-to-date returns.

Aris Water Solutions, Inc. however, belongs to the Waste Removal Services industry. Currently, this 19-stock industry is ranked #167. The industry has moved +4.2% so far this year.

Going forward, investors interested in Business Services stocks should continue to pay close attention to Amadeus IT Group SA Unsponsored ADR and Aris Water Solutions, Inc. as they could maintain their solid performance.

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

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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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