ExlService Holdings (EXLS) Gains But Lags Market: What You Should Know

In the latest trading session, ExlService Holdings (EXLS) closed at $165.83, marking a +0.58% move from the previous day. This move lagged the S&P 500's daily gain of 1.62%. Elsewhere, the Dow gained 1.17%, while the tech-heavy Nasdaq added 12.91%.

Prior to today's trading, shares of the provider of outsourcing services had lost 4.77% over the past month. This has was narrower than the Business Services sector's loss of 5.68% and lagged the S&P 500's loss of 4.54% in that time.

Wall Street will be looking for positivity from ExlService Holdings as it approaches its next earnings report date. In that report, analysts expect ExlService Holdings to post earnings of $1.59 per share. This would mark year-over-year growth of 11.97%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $374.93 million, up 13.89% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.72 per share and revenue of $1.59 billion, which would represent changes of +11.63% and +12.44%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for ExlService Holdings. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.18% higher. ExlService Holdings is currently a Zacks Rank #2 (Buy).

Looking at its valuation, ExlService Holdings is holding a Forward P/E ratio of 24.54. For comparison, its industry has an average Forward P/E of 15.95, which means ExlService Holdings is trading at a premium to the group.

Meanwhile, EXLS's PEG ratio is currently 1.69. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Outsourcing industry currently had an average PEG ratio of 1.73 as of yesterday's close.

The Outsourcing industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 79, which puts it in the top 32% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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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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