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Is Allot (ALLT) Outperforming Other Business Services Stocks 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 Allot Communications (ALLT - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Business Services peers, we might be able to answer that question.

Allot Communications is one of 315 companies in the Business Services group. The Business Services group currently sits at #5 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 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. Allot Communications is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for ALLT's full-year earnings has moved 47.7% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, ALLT has moved about 91.5% on a year-to-date basis. At the same time, Business Services stocks have gained an average of 10.8%. This means that Allot Communications is performing better than its sector in terms of year-to-date returns.

Another Business Services stock, which has outperformed the sector so far this year, is Cellebrite DI Ltd. (CLBT - Free Report) . The stock has returned 51.9% year-to-date.

For Cellebrite DI Ltd. the consensus EPS estimate for the current year has increased 7.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Allot Communications belongs to the Technology Services industry, which includes 170 individual stocks and currently sits at #95 in the Zacks Industry Rank. This group has gained an average of 22.3% so far this year, so ALLT is performing better in this area. Cellebrite DI Ltd. is also part of the same industry.

Going forward, investors interested in Business Services stocks should continue to pay close attention to Allot Communications and Cellebrite DI Ltd. as they could maintain their solid performance.


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