The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. IBM (IBM) 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.
IBM is a member of the Computer and Technology sector. This group includes 618 individual stocks and currently holds a Zacks Sector Rank of #1. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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. IBM is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for IBM's full-year earnings has moved 0.2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, IBM has returned 35.7% so far this year. In comparison, Computer and Technology companies have returned an average of 34.9%. As we can see, IBM is performing better than its sector in the calendar year.
One other Computer and Technology stock that has outperformed the sector so far this year is Credo Technology Group Holding Ltd. (CRDO). The stock is up 254% year-to-date.
For Credo Technology Group Holding Ltd. the consensus EPS estimate for the current year has increased 766.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, IBM belongs to the Computer - Integrated Systems industry, a group that includes 10 individual stocks and currently sits at #40 in the Zacks Industry Rank. This group has gained an average of 6.5% so far this year, so IBM is performing better in this area.
Credo Technology Group Holding Ltd. however, belongs to the Electronics - Semiconductors industry. Currently, this 43-stock industry is ranked #140. The industry has moved +61.9% so far this year.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to IBM and Credo Technology Group Holding Ltd. as they could maintain their solid performance.
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International Business Machines Corporation (IBM) : Free Stock Analysis Report
Credo Technology Group Holding Ltd. (CRDO) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
