Yahoo Finance Are Business Services Stocks Lagging Bakkt (BKKT) This Year?
The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Bakkt Holdings, Inc. (BKKT) 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.
Bakkt Holdings, Inc. is one of 333 companies in the Business Services group. The Business Services group currently sits at #7 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. Bakkt Holdings, Inc. is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for BKKT's full-year earnings has moved 3.1% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, BKKT has gained about 19.3% so far this year. Meanwhile, the Business Services sector has returned an average of 10.2% on a year-to-date basis. This means that Bakkt Holdings, Inc. is outperforming the sector as a whole this year.
CompoSecure, Inc. (CMPO) is another Business Services stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 42.6%.
In CompoSecure, Inc.'s case, the consensus EPS estimate for the current year increased 1.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Bakkt Holdings, Inc. belongs to the Technology Services industry, a group that includes 192 individual companies and currently sits at #109 in the Zacks Industry Rank. Stocks in this group have gained about 22% so far this year, so BKKT is slightly underperforming its industry this group in terms of year-to-date returns.
In contrast, CompoSecure, Inc. falls under the Financial Transaction Services industry. Currently, this industry has 38 stocks and is ranked #115. Since the beginning of the year, the industry has moved +7.5%.
Investors interested in the Business Services sector may want to keep a close eye on Bakkt Holdings, Inc. and CompoSecure, Inc. as they attempt to continue their solid performance.
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