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Is Outbrain (OB) Outperforming Other Business Services Stocks 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. Outbrain Inc. 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.

Outbrain Inc. is a member of our Business Services group, which includes 305 different companies and currently sits at #6 in 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 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. Outbrain Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for OB's full-year earnings has moved 220% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, OB has returned 36.1% so far this year. In comparison, Business Services companies have returned an average of 25.6%. This means that Outbrain Inc. is performing better than its sector in terms of year-to-date returns.

Another stock in the Business Services sector, Genpact (G - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 31.5%.

The consensus estimate for Genpact's current year EPS has increased 3.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Outbrain Inc. belongs to the Technology Services industry, which includes 162 individual stocks and currently sits at #68 in the Zacks Industry Rank. This group has gained an average of 59.3% so far this year, so OB is slightly underperforming its industry in this area.

On the other hand, Genpact belongs to the Outsourcing industry. This 12-stock industry is currently ranked #223. The industry has moved +27.2% year to date.

Outbrain Inc. and Genpact 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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