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Are Business Services Stocks Lagging SPX Technologies, Inc. (SPXC) 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. Has SPX Technologies (SPXC - Free Report) been one of those stocks this year? 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.

SPX Technologies is a member of the Business Services sector. This group includes 317 individual stocks and currently holds a Zacks Sector Rank of #6. 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. SPX Technologies is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for SPXC's full-year earnings has moved 3.3% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, SPXC has moved about 60.5% on a year-to-date basis. Meanwhile, the Business Services sector has returned an average of 15% on a year-to-date basis. This shows that SPX Technologies is outperforming its peers so far this year.

One other Business Services stock that has outperformed the sector so far this year is Heidrick & Struggles (HSII - Free Report) . The stock is up 28.7% year-to-date.

Over the past three months, Heidrick & Struggles' consensus EPS estimate for the current year has increased 5.2%. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, SPX Technologies is a member of the Technology Services industry, which includes 171 individual companies and currently sits at #64 in the Zacks Industry Rank. This group has gained an average of 27.7% so far this year, so SPXC is performing better in this area.

In contrast, Heidrick & Struggles falls under the Staffing Firms industry. Currently, this industry has 18 stocks and is ranked #146. Since the beginning of the year, the industry has moved -13.1%.

Going forward, investors interested in Business Services stocks should continue to pay close attention to SPX Technologies and Heidrick & Struggles as they could maintain their solid performance.


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