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Are Business Services Stocks Lagging Charles River Associates (CRAI) This Year?

Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. CRA International (CRAI) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? 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 314 different companies and currently sits at #7 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 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. 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 4.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

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Our latest available data shows that CRAI has returned about 45.1% since the start of the calendar year. Meanwhile, the Business Services sector has returned an average of 3.2% on a year-to-date basis. This shows that CRA International is outperforming its peers so far this year.

Another stock in the Business Services sector, Mitie Group PLC. (MITFY), has outperformed the sector so far this year. The stock's year-to-date return is 11%.

The consensus estimate for Mitie Group PLC.'s current year EPS has increased 5.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, CRA International belongs to the Consulting Services industry, a group that includes 14 individual companies and currently sits at #71 in the Zacks Industry Rank. On average, stocks in this group have lost 6.6% this year, meaning that CRAI is performing better in terms of year-to-date returns.

Mitie Group PLC. however, belongs to the Business - Services industry. Currently, this 22-stock industry is ranked #181. The industry has moved -18.1% so far this year.

Investors interested in the Business Services sector may want to keep a close eye on CRA International and Mitie Group PLC. as they attempt to continue their solid performance.

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Zacks Investment Research