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Has Microsoft (MSFT) Outpaced Other Computer and Technology Stocks 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. Microsoft (MSFT) 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 MSFT and the rest of the Computer and Technology group's stocks.

Microsoft is one of 647 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 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 proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the 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 0.93% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, MSFT has gained about 5.06% so far this year. At the same time, Computer and Technology stocks have gained an average of 4.81%. As we can see, Microsoft is performing better than its sector in the calendar year.

Breaking things down more, MSFT is a member of the Computer - Software industry, which includes 49 individual companies and currently sits at #61 in the Zacks Industry Rank. This group has gained an average of 6.41% so far this year, so MSFT is slightly underperforming its industry in this area.

Investors in the Computer and Technology sector will want to keep a close eye on MSFT as it attempts to continue its 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.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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