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Are Computer and Technology Stocks Lagging MongoDB (MDB) 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. Is MongoDB (MDB - Free Report) one of those stocks right now? 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.

MongoDB is one of 643 companies in the Computer and Technology group. The Computer and Technology group currently sits at #11 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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. MongoDB is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for MDB's full-year earnings has moved 13.5% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, MDB has returned 21% so far this year. In comparison, Computer and Technology companies have returned an average of 16.7%. This means that MongoDB is outperforming the sector as a whole this year.

Another stock in the Computer and Technology sector, ServiceNow (NOW - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 16.9%.

For ServiceNow, the consensus EPS estimate for the current year has increased 2.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, MongoDB is a member of the Internet - Software industry, which includes 146 individual companies and currently sits at #62 in the Zacks Industry Rank. On average, this group has gained an average of 22.5% so far this year, meaning that MDB is slightly underperforming its industry in terms of year-to-date returns.

On the other hand, ServiceNow belongs to the Computers - IT Services industry. This 40-stock industry is currently ranked #163. The industry has moved -1.8% year to date.

Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to MongoDB and ServiceNow as they could maintain their solid performance.


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