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. Is Microsoft (MSFT) one of those stocks right now? 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 627 different companies and currently sits at #7 in the Zacks Sector Rank. 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 is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. MSFT is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for MSFT’s full-year earnings has moved 8.90% higher. This means that analyst sentiment is stronger and the stock’s earnings outlook is improving.
Our latest available data shows that MSFT has returned about 4.13% since the start of the calendar year. In comparison, Computer and Technology companies have returned an average of 2.58%. This means that Microsoft is outperforming the sector as a whole this year.
Looking more specifically, MSFT belongs to the Computer – Software industry, which includes 39 individual stocks and currently sits at #163 in the Zacks Industry Rank. This group has gained an average of 1.07% so far this year, so MSFT is performing better in this area.
Investors with an interest in Computer and Technology stocks should continue to track MSFT. The stock will be looking to continue its solid performance.
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