Is GDS Holdings (GDS) Stock Outpacing Its Business Services Peers This Year?

The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has GDS Holdings (GDS) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Business Services peers, we might be able to answer that question.

GDS Holdings is a member of the Business Services sector. This group includes 238 individual stocks and currently holds a Zacks Sector Rank of #13. 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 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. GDS Holdings is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for GDS' full-year earnings has moved 538.7% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, GDS has moved about 21.2% on a year-to-date basis. Meanwhile, stocks in the Business Services group have lost about 11% on average. This means that GDS Holdings is outperforming the sector as a whole this year.

Another stock in the Business Services sector, UL Solutions Inc. (ULS), has outperformed the sector so far this year. The stock's year-to-date return is 9.1%.

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).

Looking more specifically, GDS Holdings belongs to the Technology Services industry, a group that includes 109 individual stocks and currently sits at #182 in the Zacks Industry Rank. On average, stocks in this group have lost 9.8% this year, meaning that GDS is performing better in terms of year-to-date returns.

On the other hand, UL Solutions Inc. belongs to the Business - Services industry. This 23-stock industry is currently ranked #172. The industry has moved -11.5% year to date.

GDS Holdings and UL Solutions Inc. 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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This article originally published on Zacks Investment Research (zacks.com).

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