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Has Automatic Data Processing (ADP) Outpaced Other Business Services Stocks This Year?

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The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Automatic Data Processing (ADP - 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.

Automatic Data Processing is one of 277 companies in the Business Services group. The Business Services group currently sits at #6 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Automatic Data Processing is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for ADP's full-year earnings has moved 2.1% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that ADP has returned about 33% since the start of the calendar year. In comparison, Business Services companies have returned an average of -24.9%. As we can see, Automatic Data Processing 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 BGSF (BGSF - Free Report) . The stock is up 7.3% year-to-date.

The consensus estimate for BGSF's current year EPS has increased 0.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Automatic Data Processing is a member of the Outsourcing industry, which includes 13 individual companies and currently sits at #94 in the Zacks Industry Rank. On average, stocks in this group have gained 29.4% this year, meaning that ADP is performing better in terms of year-to-date returns.

In contrast, BGSF falls under the Business - Services industry. Currently, this industry has 29 stocks and is ranked #108. Since the beginning of the year, the industry has moved +127.5%.

Investors interested in the Business Services sector may want to keep a close eye on Automatic Data Processing and BGSF as they attempt to continue their solid performance.


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