Is Industrial Tech Acquisitions (arbe) Outperforming Other Business Services Stocks 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 Arbe Robotics Ltd. (ARBE) 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.

Arbe Robotics Ltd. is one of 288 companies in the Business Services group. The Business Services group currently sits at #9 within 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 system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Arbe Robotics Ltd. is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for ARBE's full-year earnings has moved 10.3% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, ARBE has gained about 7% so far this year. Meanwhile, stocks in the Business Services group have gained about 6.5% on average. As we can see, Arbe Robotics Ltd. is performing better than its sector in the calendar year.

One other Business Services stock that has outperformed the sector so far this year is DLocal (DLO). The stock is up 24.3% year-to-date.

For DLocal, the consensus EPS estimate for the current year has increased 2.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Arbe Robotics Ltd. belongs to the Technology Services industry, which includes 152 individual stocks and currently sits at #74 in the Zacks Industry Rank. On average, this group has gained an average of 8.5% so far this year, meaning that ARBE is slightly underperforming its industry in terms of year-to-date returns.

In contrast, DLocal falls under the Financial Transaction Services industry. Currently, this industry has 36 stocks and is ranked #77. Since the beginning of the year, the industry has moved +3.1%.

Going forward, investors interested in Business Services stocks should continue to pay close attention to Arbe Robotics Ltd. and DLocal as they could maintain their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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