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Is Envestnet (ENV) Stock Outpacing Its Business Services Peers This Year?

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For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Envestnet (ENV - 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? 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.

Envestnet is a member of the Business Services sector. This group includes 315 individual stocks and currently holds a Zacks Sector Rank of #6. 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. Envestnet is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for ENV's full-year earnings has moved 0.6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that ENV has returned about 25.2% since the start of the calendar year. Meanwhile, the Business Services sector has returned an average of 8.5% on a year-to-date basis. This shows that Envestnet is outperforming its peers so far this year.

Another stock in the Business Services sector, Byrna Technologies Inc. (BYRN - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 52.6%.

For Byrna Technologies Inc. the consensus EPS estimate for the current year has increased 85.7% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Envestnet belongs to the Financial Transaction Services industry, a group that includes 41 individual stocks and currently sits at #160 in the Zacks Industry Rank. On average, this group has gained an average of 3% so far this year, meaning that ENV is performing better in terms of year-to-date returns.

Byrna Technologies Inc. however, belongs to the Technology Services industry. Currently, this 170-stock industry is ranked #95. The industry has moved +19.3% so far this year.

Envestnet and Byrna Technologies Inc. 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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