For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Cintas (CTAS – Free Report) 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? A quick glance at the company’s year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question.
Cintas is a member of the Business Services sector. This group includes 290 individual stocks and currently holds a Zacks Sector Rank of #7. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Cintas is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for CTAS’ full-year earnings has moved 2% higher. This shows that analyst sentiment has improved and the company’s earnings outlook is stronger.
Our latest available data shows that CTAS has returned about 5.2% since the start of the calendar year. Meanwhile, the Business Services sector has returned an average of -0.8% on a year-to-date basis. This means that Cintas is outperforming the sector as a whole this year.
Another stock in the Business Services sector, Gorilla Technology Group Inc. (GRRR – Free Report) , has outperformed the sector so far this year. The stock’s year-to-date return is 54.7%.
In Gorilla Technology Group Inc.’s case, the consensus EPS estimate for the current year increased 12% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Cintas belongs to the Business – Services industry, which includes 25 individual stocks and currently sits at #158 in the Zacks Industry Rank. On average, this group has lost an average of 0.6% so far this year, meaning that CTAS is performing better in terms of year-to-date returns.
Gorilla Technology Group Inc. however, belongs to the Technology Services industry. Currently, this 151-stock industry is ranked #73. The industry has moved 0% so far this year.
Investors interested in the Business Services sector may want to keep a close eye on Cintas and Gorilla Technology Group Inc. as they attempt to continue their solid performance.
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