We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The technology sector has delivered remarkable gains over the last year, with easing costs and an overall more favorable operating environment providing favorable tailwinds.
While the gains have undoubtedly been impressive, there have been several non-technology stocks – e.l.f. Beauty (ELF - Free Report) , Abercrombie & Fitch (ANF - Free Report) , and Builders FirstSource (BLDR - Free Report) – have all outperformed the Zacks Technology sector over the last year, as we can see below.
Image Source: Zacks Investment Research
In addition to strong price action, several currently sport a favorable Zacks Rank, reflecting upward trending earnings estimate revisions among analysts. Let’s take a closer look at each.
e.l.f. Beauty
e.l.f. Beauty is a cosmetics company, with its products primarily consisting of face makeup, eye makeup, lip products, nail products, and cosmetic kits. The stock is a Zacks Rank #2 (Buy), with earnings expectations moving higher across the board.
Image Source: Zacks Investment Research
The company’s robust growth has fueled its share performance, with quarterly revenue of $271 million throughout its latest period jumping 85% year-over-year. Sales growth has been driven by continued business momentum and a stronger-than-expected consumer.
Image Source: Zacks Investment Research
Shares trade at steep multiples, reflective of its expected growth and perhaps steering value-conscious investors away. The current forward earnings multiple (F1) of 56.6X is undoubtedly expensive but remains below the 67.4X five-year median.
Abercrombie & Fitch
Abercrombie & Fitch operates as a specialty retailer of many types of premium, high-quality casual apparel for men, women, and kids through a vast store network. The company’s earnings outlook has increased considerably, landing it into a favorable Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
The company’s growth is notably strong, with consensus expectations for its current fiscal year suggesting 2300% earnings growth on 15% higher sales. As mentioned earlier, a less costly operating environment has led to a jump in profitability.
Share performance has been supported by better-than-expected quarterly results, moving higher post-earnings in three consecutive releases.
Image Source: Zacks Investment Research
Builders FirstSource
Builders FirstSource supplies building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers.
Perhaps to the surprise of some, BLDR shares have been considerably strong performers over the last decade, providing a remarkable 36% annualized return over the period compared to the S&P 500’s respective 13%.
Image Source: Zacks Investment Research
Growth is expected to taper in its current year, with consensus estimates for FY23 suggesting a 26% pullback in earnings on a 25% revenue decline. The company benefited nicely from higher building costs in recent years, with FY22 revenue of $22.7 billion 165% higher than the $8.6 billion mark in FY20.
Bottom Line
While technology stocks continue to dominate headlines thanks to their strong performances, the sector hasn’t been alone in producing big-time winners over the last year.
All three stocks above – e.l.f. Beauty (ELF - Free Report) , Abercrombie & Fitch (ANF - Free Report) , and Builders FirstSource (BLDR - Free Report) – have all outperformed the Zacks Technology sector over the last year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Relative Strength: 3 Stocks Outperforming High-Flying Tech
The technology sector has delivered remarkable gains over the last year, with easing costs and an overall more favorable operating environment providing favorable tailwinds.
While the gains have undoubtedly been impressive, there have been several non-technology stocks – e.l.f. Beauty (ELF - Free Report) , Abercrombie & Fitch (ANF - Free Report) , and Builders FirstSource (BLDR - Free Report) – have all outperformed the Zacks Technology sector over the last year, as we can see below.
Image Source: Zacks Investment Research
In addition to strong price action, several currently sport a favorable Zacks Rank, reflecting upward trending earnings estimate revisions among analysts. Let’s take a closer look at each.
e.l.f. Beauty
e.l.f. Beauty is a cosmetics company, with its products primarily consisting of face makeup, eye makeup, lip products, nail products, and cosmetic kits. The stock is a Zacks Rank #2 (Buy), with earnings expectations moving higher across the board.
Image Source: Zacks Investment Research
The company’s robust growth has fueled its share performance, with quarterly revenue of $271 million throughout its latest period jumping 85% year-over-year. Sales growth has been driven by continued business momentum and a stronger-than-expected consumer.
Image Source: Zacks Investment Research
Shares trade at steep multiples, reflective of its expected growth and perhaps steering value-conscious investors away. The current forward earnings multiple (F1) of 56.6X is undoubtedly expensive but remains below the 67.4X five-year median.
Abercrombie & Fitch
Abercrombie & Fitch operates as a specialty retailer of many types of premium, high-quality casual apparel for men, women, and kids through a vast store network. The company’s earnings outlook has increased considerably, landing it into a favorable Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
The company’s growth is notably strong, with consensus expectations for its current fiscal year suggesting 2300% earnings growth on 15% higher sales. As mentioned earlier, a less costly operating environment has led to a jump in profitability.
Share performance has been supported by better-than-expected quarterly results, moving higher post-earnings in three consecutive releases.
Image Source: Zacks Investment Research
Builders FirstSource
Builders FirstSource supplies building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers.
Perhaps to the surprise of some, BLDR shares have been considerably strong performers over the last decade, providing a remarkable 36% annualized return over the period compared to the S&P 500’s respective 13%.
Image Source: Zacks Investment Research
Growth is expected to taper in its current year, with consensus estimates for FY23 suggesting a 26% pullback in earnings on a 25% revenue decline. The company benefited nicely from higher building costs in recent years, with FY22 revenue of $22.7 billion 165% higher than the $8.6 billion mark in FY20.
Bottom Line
While technology stocks continue to dominate headlines thanks to their strong performances, the sector hasn’t been alone in producing big-time winners over the last year.
All three stocks above – e.l.f. Beauty (ELF - Free Report) , Abercrombie & Fitch (ANF - Free Report) , and Builders FirstSource (BLDR - Free Report) – have all outperformed the Zacks Technology sector over the last year.