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Are Business Services Stocks Lagging Fiserv (FI) This Year?

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Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Is Fiserv (FI - Free Report) one of those stocks right now? 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.

Fiserv is a member of our Business Services group, which includes 330 different companies and currently sits at #12 in the Zacks Sector Rank. 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 proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Fiserv is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for FI's full-year earnings has moved 0.2% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, FI has returned 28.4% so far this year. At the same time, Business Services stocks have gained an average of 12.7%. This means that Fiserv is outperforming the sector as a whole this year.

Another Business Services stock, which has outperformed the sector so far this year, is Trane Technologies (TT - Free Report) . The stock has returned 15.7% year-to-date.

The consensus estimate for Trane Technologies' current year EPS has increased 1.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Fiserv belongs to the Financial Transaction Services industry, which includes 38 individual stocks and currently sits at #103 in the Zacks Industry Rank. Stocks in this group have gained about 14.2% so far this year, so FI is performing better this group in terms of year-to-date returns.

Trane Technologies, however, belongs to the Technology Services industry. Currently, this 187-stock industry is ranked #119. The industry has moved +22.1% so far this year.

Fiserv and Trane Technologies 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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