If you’re looking for strong Business Services stocks, it’s important to focus on companies that are outperforming their peers. One such company is Spotify (NYSE:SPOT), which has shown promising year-to-date performance compared to its peers in the sector. As part of a group of 316 individual stocks, Spotify currently holds a Zacks Sector Rank of #5.
The Zacks Sector Rank is based on the average Zacks Rank of the individual companies within each sector, with the best-ranked sectors listed first. Spotify currently has a Zacks Rank of #1 (Strong Buy), indicating a positive outlook for the stock based on earnings estimates and revisions. Over the past three months, the consensus estimate for SPOT’s full-year earnings has increased by 39.5%, reflecting a positive trend in analyst sentiment and earnings outlook. So far this year, SPOT has gained about 64.9%, outperforming the average return of 6.7% for the Business Services sector.
Another Business Services stock that has shown strong performance compared to the sector this year is Paymentus (NYSE:PAY). The stock has returned 8.2% since the beginning of the year, while the consensus EPS estimate for the current year has increased by 11.5% over the past three months. Paymentus currently holds a Zacks Rank #2 (Buy).
Both Spotify and Paymentus belong to the Technology Services industry, which comprises 173 individual stocks and currently ranks at #68 in the Zacks Industry Rank. On average, this industry has gained 20.7% so far this year, with both SPOT and PAY performing better in terms of year-to-date returns.
Investors interested in Business Services stocks should keep a close watch on Spotify and Paymentus, as these stocks could continue their strong performance.
