• Entertainment
  • Finance
  • Marketing
  • Real Estate
  • Technology
  • Social
National Journal Community Of e-Experts
Finance 0

4 Business Services Stocks That Outperformed In March

By Kurt Osterberg · On April 9, 2018

The business services sector is usually directly proportional to the broader economy, which is currently quite favorable. A rise in GDP, an improving employment scenario, inflation approaching 2%, easing of the U.S. dollar and momentum in oil prices are all signs of improvement in the U.S. economy, which in turn should boost the business service sector. Trump’s business-friendly policies, including tax cuts, and repeal of regulations are additional tailwinds.

Further, earnings and revenues from the sector are likely to improve in the first quarter, which makes it a good idea to pick select business services stocks that have outperformed the market in March and are poised to carry on the momentum.

Stronger GDP — A Key Catalyst

Gross Domestic Product (GDP) grew at a seasonally adjusted annual rate of 2.6% in the fourth quarter of 2017, following gains in the previous two quarters of more than 3%, per the “advance” estimate released by the Bureau of Economic Analysis. This marked the economy’s strongest stretch of growth since the expansion started in mid-2009.

Per the U.S. Energy Information Administration (EIA), gross domestic product is estimated to increase in the upcoming quarters. GDP growth is now expected to accelerate 2.4% in 2018 and 2019, better than 2.3% in 2017.

This favorable outlook for the U.S. economy is a net positive for the business service sector. No doubt the Zacks Business Services sector has been a strong performer, gaining 15.7% in a year, outperforming the S&P 500 index’s 12.5% gain.

ISM Services Gauge Records 98th Month of Expansion

In March, ISM Services Index stood at 58.8%. Any level above 50 signifies expansion for the sector and going by that benchmark, this is the 98th consecutive month of expansion. The Prices Index and the Employment Index gained 0.5% and 1.6% to hit 61.5% and 56.6%, respectively. As many as 15 non-manufacturing industries reported growth.

Q1 Earnings Expectations Strong

Print Friendly, PDF & Email

Share Tweet

Kurt Osterberg

You Might Also Like

  • Finance

    How Effective Is Virtual Training?

  • Finance

    Building Better Business Relationships: Your 3 Essential Mindsets

  • Finance

    Artificial Intelligence vs. Genuine Creativity

No Comments

Leave a reply Cancel reply

Top Finance

  • Chart: Amazon’s Dominance In Ecommerce Chart: Amazon’s Dominance In Ecommerce
  • Shark Tank Recap: Shed Defender, Tata Towels and Sanaia Applesauce Secure Deals Shark Tank Recap: Shed Defender, Tata Towels and Sanaia Applesauce Secure Deals
  • Hedge Funds In The US Hedge Funds In The US
  • One Ring To Rule Them All One Ring To Rule Them All
  • Dollar General (DG) Q2 Earnings And Revenues Surpass Estimates Dollar General (DG) Q2 Earnings And Revenues Surpass Estimates

New Posts

  • How Effective Is Virtual Training?

    How Effective Is Virtual Training?

    January 21, 2021
  • Building Better Business Relationships: Your 3 Essential Mindsets

    Building Better Business Relationships: Your 3 Essential Mindsets

    January 21, 2021
  • Artificial Intelligence vs. Genuine Creativity

    Artificial Intelligence vs. Genuine Creativity

    January 21, 2021
  • 3 Ways to Make 2021 a Great Year For Your Business

    3 Ways to Make 2021 a Great Year For Your Business

    January 21, 2021
  • 4 Automated Systems to Scale Your Business

    4 Automated Systems to Scale Your Business

    January 21, 2021
  • About
  • Contact Us
  • Privacy & Policy
  • Sitemap
  • Terms of use

Copyright © 2018 NJCEE. All Rights Reserved.