Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Facebook (FB) 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? One simple way to answer this question is to take a look at the year-to-date performance of FB and the rest of the Computer and Technology group’s stocks.
Facebook is one of 620 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #10 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. FB is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for FB’s full-year earnings has moved 15.77% higher. This signals that analyst sentiment is improving and the stock’s earnings outlook is more positive.
Our latest available data shows that FB has returned about 13.47% since the start of the calendar year. Meanwhile, the Computer and Technology sector has returned an average of 7.70% on a year-to-date basis. This means that Facebook is performing better than its sector in terms of year-to-date returns.
To break things down more, FB belongs to the Internet – Services industry, a group that includes 49 individual companies and currently sits at #162 in the Zacks Industry Rank. On average, stocks in this group have gained 19.91% this year, meaning that FB is slightly underperforming its industry in terms of year-to-date returns.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to FB as it looks to continue its solid performance.
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