Here is how Dell Technologies (DELL) and Cognex Corporation (CGNX) have performed compared to their sector so far this year.
The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Dell $DELL Technologies (DELL) 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.
Dell Technologies is one of 597 companies in the Computer and Technology group. The Computer and Technology group currently sits at #2 within 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 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. Dell Technologies is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for DELL's full-year earnings has moved 12.6% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, DELL has returned 41.2% so far this year. Meanwhile, stocks in the Computer and Technology group have lost about 5% on average. This means that Dell Technologies is outperforming the sector as a whole this year.
Another Computer and Technology stock, which has outperformed the sector so far this year, is Cognex Corporation (CGNX). The stock has returned 43.7% year-to-date.
Over the past three months, Cognex Corporation's consensus EPS estimate for the current year has increased 12.5%. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Dell Technologies is a member of the Computer - Micro Computers industry, which includes 5 individual companies and currently sits at #66 in the Zacks Industry Rank. Stocks in this group have lost about 5.7% so far this year, so DELL is performing better this group in terms of year-to-date returns.
In contrast, Cognex Corporation falls under the Electronics - Testing Equipment industry. Currently, this industry has 4 stocks and is ranked #16. Since the beginning of the year, the industry has moved +8.6%.
Dell Technologies and Cognex Corporation could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.
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