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Is 2U (TWOU) Stock Outpacing Its Computer and Technology Peers This Year?

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The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. 2U (TWOU - Free Report) 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 TWOU and the rest of the Computer and Technology group's stocks.

2U is one of 612 companies in the Computer and Technology group. The Computer and Technology group currently sits at #12 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. TWOU is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for TWOU's full-year earnings has moved 2.45% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, TWOU has gained about 55.40% so far this year. At the same time, Computer and Technology stocks have gained an average of 23.39%. As we can see, 2U is performing better than its sector in the calendar year.

To break things down more, TWOU belongs to the Internet - Software industry, a group that includes 92 individual companies and currently sits at #165 in the Zacks Industry Rank. On average, stocks in this group have gained 80.94% this year, meaning that TWOU is slightly underperforming its industry in terms of year-to-date returns.

TWOU will likely be looking to continue its solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to the company.


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