For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Marathon Digital Holdings (MARA) 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? One simple way to answer this question is to take a look at the year-to-date performance of MARA and the rest of the Business Services group’s stocks.
Marathon Digital Holdings is one of 243 individual stocks in the Business Services sector. Collectively, these companies sit at #13 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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. MARA is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for MARA’s full-year earnings has moved 19.70% higher within the past quarter. This means that analyst sentiment is stronger and the stock’s earnings outlook is improving.
Based on the latest available data, MARA has gained about 252.11% so far this year. Meanwhile, stocks in the Business Services group have lost about 17.04% on average. This means that Marathon Digital Holdings is outperforming the sector as a whole this year.
Looking more specifically, MARA belongs to the Technology Services industry, a group that includes 105 individual stocks and currently sits at #225 in the Zacks Industry Rank. Stocks in this group have lost about 22.22% so far this year, so MARA is performing better this group in terms of year-to-date returns.
Investors in the Business Services sector will want to keep a close eye on MARA as it attempts to continue its solid performance.
Tech IPOs With Massive Profit Potential
In the past few years, many popular platforms and like Uber and Airbnb finally made their way to the public markets. But the biggest paydays came from lesser-known names.
For example, electric carmaker X Peng shot up +299.4% in just 2 months. Think of it this way…
If you had put $5,000 into XPEV at its IPO in September 2020, you could have cashed out with $19,970 in November.
With record amounts of cash flooding into IPOs and a record-setting stock market, this year’s lineup could be even more lucrative.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.