Are Business Services Stocks Lagging Charles River Associates (CRAI) 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 CRA International (CRAI) 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.

CRA International is a member of our Business Services group, which includes 312 different companies and currently sits at #5 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 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. CRA International is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for CRAI's full-year earnings has moved 12% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, CRAI has gained about 84.6% so far this year. In comparison, Business Services companies have returned an average of 14.6%. This shows that CRA International is outperforming its peers so far this year.

Another stock in the Business Services sector, ABM Industries (ABM), has outperformed the sector so far this year. The stock's year-to-date return is 16.7%.

The consensus estimate for ABM Industries' current year EPS has increased 1.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, CRA International belongs to the Consulting Services industry, which includes 13 individual stocks and currently sits at #46 in the Zacks Industry Rank. On average, this group has gained an average of 11.3% so far this year, meaning that CRAI is performing better in terms of year-to-date returns.

ABM Industries, however, belongs to the Building Products - Maintenance Service industry. Currently, this 3-stock industry is ranked #3. The industry has moved +14.8% so far this year.

CRA International and ABM Industries 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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