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Is Montrose Environmental Group (MEG) Outperforming Other Business Services Stocks 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. Is Montrose Environmental (MEG - Free Report) one of those stocks right now? 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.

Montrose Environmental is a member of our Business Services group, which includes 256 different companies and currently sits at #8 in 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. Montrose Environmental is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for MEG's full-year earnings has moved 145% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, MEG has moved about 10.9% on a year-to-date basis. Meanwhile, the Business Services sector has returned an average of -1.2% on a year-to-date basis. As we can see, Montrose Environmental is performing better than its sector in the calendar year.

Another Business Services stock, which has outperformed the sector so far this year, is Nomura Research Institute (NRILY - Free Report) . The stock has returned 38.4% year-to-date.

Over the past three months, Nomura Research Institute's consensus EPS estimate for the current year has increased 8.1%. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Montrose Environmental belongs to the Waste Removal Services industry, a group that includes 22 individual stocks and currently sits at #173 in the Zacks Industry Rank. On average, stocks in this group have gained 10% this year, meaning that MEG is performing better in terms of year-to-date returns.

Nomura Research Institute, however, belongs to the Technology Services industry. Currently, this 120-stock industry is ranked #95. The industry has moved +9.3% so far this year.

Investors interested in the Business Services sector may want to keep a close eye on Montrose Environmental and Nomura Research Institute as they attempt to continue their solid performance.

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