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Is MongoDB (MDB) Stock Outpacing Its Computer and Technology Peers This Year?

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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. MongoDB (MDB - 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? Let's take a closer look at the stock's year-to-date performance to find out.

MongoDB is one of 650 companies in the Computer and Technology group. The Computer and Technology group currently sits at #6 within the Zacks Sector Rank. 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. MongoDB is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for MDB's full-year earnings has moved 13.3% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, MDB has moved about 15.9% on a year-to-date basis. At the same time, Computer and Technology stocks have gained an average of 14%. As we can see, MongoDB is performing better than its sector in the calendar year.

Another stock in the Computer and Technology sector, RingCentral (RNG - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 19.4%.

For RingCentral, the consensus EPS estimate for the current year has increased 62.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, MongoDB belongs to the Internet - Software industry, a group that includes 148 individual companies and currently sits at #67 in the Zacks Industry Rank. This group has gained an average of 20.1% so far this year, so MDB is slightly underperforming its industry in this area.

RingCentral, however, belongs to the Internet - Software and Services industry. Currently, this 12-stock industry is ranked #49. The industry has moved +17.6% so far this year.

Investors interested in the Computer and Technology sector may want to keep a close eye on MongoDB and RingCentral as they attempt to continue their solid performance.


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