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Has Cloudflare (NET) Outpaced Other Computer and Technology Stocks 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. Has Cloudflare (NET - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.

Cloudflare is one of 646 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #7 in 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. Cloudflare is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for NET's full-year earnings has moved 16.8% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, NET has returned 18.8% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 15.9% on average. This shows that Cloudflare is outperforming its peers so far this year.

One other Computer and Technology stock that has outperformed the sector so far this year is Nova Ltd. (NVMI - Free Report) . The stock is up 23.1% year-to-date.

Over the past three months, Nova Ltd.'s consensus EPS estimate for the current year has increased 4.6%. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Cloudflare is a member of the Internet - Software industry, which includes 146 individual companies and currently sits at #63 in the Zacks Industry Rank. Stocks in this group have gained about 21.9% so far this year, so NET is slightly underperforming its industry this group in terms of year-to-date returns.

In contrast, Nova Ltd. falls under the Electronics - Semiconductors industry. Currently, this industry has 39 stocks and is ranked #92. Since the beginning of the year, the industry has moved +25.2%.

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


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