For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Allot Communications (ALLT – Free Report) one of those stocks right now? Let’s take a closer look at the stock’s year-to-date performance to find out.
Allot Communications is one of 305 companies in the Business Services group. The Business Services group currently sits at #4 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. Allot Communications is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for ALLT’s full-year earnings has moved 25% higher within the past quarter. This shows that analyst sentiment has improved and the company’s earnings outlook is stronger.
Our latest available data shows that ALLT has returned about 230.6% since the start of the calendar year. In comparison, Business Services companies have returned an average of 23.4%. As we can see, Allot Communications 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 Cantaloupe (CTLP – Free Report) . The stock is up 31.7% year-to-date.
In Cantaloupe’s case, the consensus EPS estimate for the current year increased 3.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Allot Communications is a member of the Technology Services industry, which includes 162 individual companies and currently sits at #54 in the Zacks Industry Rank. On average, stocks in this group have gained 58.8% this year, meaning that ALLT is performing better in terms of year-to-date returns.
On the other hand, Cantaloupe belongs to the Financial Transaction Services industry. This 42-stock industry is currently ranked #72. The industry has moved +24.7% year to date.
Investors interested in the Business Services sector may want to keep a close eye on Allot Communications and Cantaloupe as they attempt to continue their solid performance.
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