Are Business Services Stocks Lagging Distribution Solutions Group (DSGR) This Year?

In This Article:

The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Distribution Solutions Group (DSGR) 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.

Distribution Solutions Group is one of 316 companies in the Business Services group. The Business Services group currently sits at #5 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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. Distribution Solutions Group is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for DSGR's full-year earnings has moved 4.2% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, DSGR has moved about 17.9% on a year-to-date basis. At the same time, Business Services stocks have gained an average of 13.4%. This means that Distribution Solutions Group is outperforming the sector as a whole this year.

One other Business Services stock that has outperformed the sector so far this year is SGS SA (SGSOY). The stock is up 29.4% year-to-date.

Over the past three months, SGS SA's consensus EPS estimate for the current year has increased 0.4%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Distribution Solutions Group belongs to the Technology Services industry, which includes 171 individual stocks and currently sits at #63 in the Zacks Industry Rank. On average, stocks in this group have gained 22.9% this year, meaning that DSGR is slightly underperforming its industry in terms of year-to-date returns.

On the other hand, SGS SA belongs to the Business - Services industry. This 24-stock industry is currently ranked #90. The industry has moved +1.4% year to date.

Investors with an interest in Business Services stocks should continue to track Distribution Solutions Group and SGS SA. These stocks will be looking to continue their solid performance.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report