The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Check Point Software (CHKP) 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? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.
Check Point Software is one of 617 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #7 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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. Check Point Software is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for CHKP's full-year earnings has moved 0.6% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, CHKP has gained about 20% so far this year. In comparison, Computer and Technology companies have returned an average of 19.2%. This means that Check Point Software is outperforming the sector as a whole this year.
Another stock in the Computer and Technology sector, Itron (ITRI), has outperformed the sector so far this year. The stock's year-to-date return is 37.5%.
Over the past three months, Itron's consensus EPS estimate for the current year has increased 13.8%. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Check Point Software belongs to the Computers - IT Services industry, a group that includes 39 individual companies and currently sits at #150 in the Zacks Industry Rank. Stocks in this group have gained about 0.6% so far this year, so CHKP is performing better this group in terms of year-to-date returns.
On the other hand, Itron belongs to the Electronics - Testing Equipment industry. This 6-stock industry is currently ranked #105. The industry has moved +4.6% year to date.
Investors with an interest in Computer and Technology stocks should continue to track Check Point Software and Itron. These stocks will be looking to continue their solid performance.
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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.
