Are Business Services Stocks Lagging Exponent (EXPO) This Year?

The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Exponent (EXPO) 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.

Exponent is one of 315 companies in the Business Services group. The Business Services group currently sits at #3 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 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. Exponent is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for EXPO's full-year earnings has moved 9.1% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, EXPO has moved about 9.4% on a year-to-date basis. In comparison, Business Services companies have returned an average of 5.9%. As we can see, Exponent is performing better than its sector in the calendar year.

One other Business Services stock that has outperformed the sector so far this year is Nu Holdings Ltd. (NU). The stock is up 40.8% year-to-date.

In Nu Holdings Ltd.'s case, the consensus EPS estimate for the current year increased 3.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Exponent belongs to the Consulting Services industry, a group that includes 14 individual stocks and currently sits at #94 in the Zacks Industry Rank. Stocks in this group have lost about 9.6% so far this year, so EXPO is performing better this group in terms of year-to-date returns.

On the other hand, Nu Holdings Ltd. belongs to the Technology Services industry. This 173-stock industry is currently ranked #55. The industry has moved +15.4% year to date.

Exponent and Nu Holdings Ltd. 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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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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