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Is ABM Industries (ABM) Stock Outpacing Its Business Services Peers 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. ABM Industries (ABM - 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? Let's take a closer look at the stock's year-to-date performance to find out.

ABM Industries is one of 316 companies in the Business Services group. The Business Services group currently sits at #6 within 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 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. ABM Industries is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for ABM's full-year earnings has moved 2.6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, ABM has gained about 21% so far this year. In comparison, Business Services companies have returned an average of 10.4%. This means that ABM Industries is outperforming the sector as a whole this year.

Another Business Services stock, which has outperformed the sector so far this year, is CRA International (CRAI - Free Report) . The stock has returned 60.5% year-to-date.

Over the past three months, CRA International's consensus EPS estimate for the current year has increased 10.5%. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, ABM Industries belongs to the Building Products - Maintenance Service industry, which includes 3 individual stocks and currently sits at #27 in the Zacks Industry Rank. This group has gained an average of 14.6% so far this year, so ABM is performing better in this area.

On the other hand, CRA International belongs to the Consulting Services industry. This 14-stock industry is currently ranked #99. The industry has moved +7.3% year to date.

ABM Industries and CRA International 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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