The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Nvidia (NVDA) 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? Let's take a closer look at the stock's year-to-date performance to find out.
Nvidia is a member of the Computer and Technology sector. This group includes 603 individual stocks and currently holds a Zacks Sector Rank of #1. 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. Nvidia is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for NVDA's full-year earnings has moved 4.4% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, NVDA has returned 38.2% so far this year. In comparison, Computer and Technology companies have returned an average of 29%. This means that Nvidia is performing better than its sector in terms of year-to-date returns.
One other Computer and Technology stock that has outperformed the sector so far this year is Appian (APPN). The stock is up 30.5% year-to-date.
Over the past three months, Appian's consensus EPS estimate for the current year has increased 99%. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Nvidia belongs to the Semiconductor - General industry, a group that includes 7 individual companies and currently sits at #34 in the Zacks Industry Rank. On average, this group has gained an average of 35.9% so far this year, meaning that NVDA is performing better in terms of year-to-date returns.
Appian, however, belongs to the Internet - Software industry. Currently, this 168-stock industry is ranked #61. The industry has moved +9.9% so far this year.
Investors with an interest in Computer and Technology stocks should continue to track Nvidia and Appian. These stocks will be looking to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
