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. Digital Turbine (APPS) 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 APPS and the rest of the Computer and Technology group's stocks.
Digital Turbine is a member of the Computer and Technology sector. This group includes 642 individual stocks and currently holds a Zacks Sector Rank of #5. 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 model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. APPS is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for APPS's full-year earnings has moved 350% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, APPS has returned 69.40% so far this year. In comparison, Computer and Technology companies have returned an average of 12.49%. As we can see, Digital Turbine is performing better than its sector in the calendar year.
Looking more specifically, APPS belongs to the Internet - Software industry, which includes 83 individual stocks and currently sits at #53 in the Zacks Industry Rank. On average, this group has gained an average of 20.93% so far this year, meaning that APPS is performing better in terms of year-to-date returns.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to APPS as it looks to continue its solid performance.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.