Here is how PagSeguro Digital Ltd. (PAGS) and UL Solutions Inc. (ULS) have performed compared to their sector so far this year.
Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Has PagSeguro Digital Ltd. (PAGS) been one of those stocks this year? 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.
PagSeguro Digital Ltd. is a member of our Business Services group, which includes 234 different companies and currently sits at #13 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. PagSeguro Digital Ltd. is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for PAGS' full-year earnings has moved 2.9% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, PAGS has gained about 10.5% so far this year. Meanwhile, stocks in the Business Services group have lost about 11.4% on average. This means that PagSeguro Digital Ltd. is performing better than its sector in terms of year-to-date returns.
UL Solutions Inc. (ULS) is another Business Services stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 7.1%.
The consensus estimate for UL Solutions Inc.'s current year EPS has increased 6.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, PagSeguro Digital Ltd. is a member of the Financial Transaction Services industry, which includes 36 individual companies and currently sits at #159 in the Zacks Industry Rank. On average, stocks in this group have lost 17.9% this year, meaning that PAGS is performing better in terms of year-to-date returns.
UL Solutions Inc., however, belongs to the Business - Services industry. Currently, this 20-stock industry is ranked #149. The industry has moved -12.4% so far this year.
Going forward, investors interested in Business Services stocks should continue to pay close attention to PagSeguro Digital Ltd. and UL Solutions Inc. as they could maintain their solid performance.
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
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