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Are Business Services Stocks Lagging AppLovin (APP) 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. AppLovin (APP - 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question.

AppLovin is one of 308 individual stocks in the Business Services sector. Collectively, these companies sit at #5 in the Zacks Sector Rank. 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. AppLovin is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for APP's full-year earnings has moved 14.4% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, APP has gained about 627.8% so far this year. Meanwhile, stocks in the Business Services group have gained about 27.5% on average. This shows that AppLovin is outperforming its peers so far this year.

One other Business Services stock that has outperformed the sector so far this year is ADS-TEC Energy PLC (ADSE - Free Report) . The stock is up 91.8% year-to-date.

For ADS-TEC Energy PLC, the consensus EPS estimate for the current year has increased 61.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, AppLovin belongs to the Technology Services industry, a group that includes 165 individual stocks and currently sits at #65 in the Zacks Industry Rank. Stocks in this group have gained about 52.7% so far this year, so APP is performing better this group in terms of year-to-date returns. ADS-TEC Energy PLC is also part of the same industry.

Investors interested in the Business Services sector may want to keep a close eye on AppLovin and ADS-TEC Energy PLC as they attempt to continue their solid performance.


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