For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Microsoft (MSFT) 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 Computer and Technology sector should help us answer this question.
Microsoft is a member of our Computer and Technology group, which includes 612 different companies and currently sits at #12 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. MSFT is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for MSFT's full-year earnings has moved 2.58% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, MSFT has returned 28.52% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 21.07% on average. This shows that Microsoft is outperforming its peers so far this year.
Looking more specifically, MSFT belongs to the Computer - Software industry, a group that includes 41 individual stocks and currently sits at #159 in the Zacks Industry Rank. On average, this group has gained an average of 24.31% so far this year, meaning that MSFT is performing better in terms of year-to-date returns.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to MSFT as it looks to continue its solid performance.
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