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Has Karooooo (KARO) Outpaced Other Computer and Technology Stocks This Year?

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Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Has Karooooo Ltd. (KARO - 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.

Karooooo Ltd. is one of 608 companies in the Computer and Technology group. The Computer and Technology group currently sits at #4 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

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. Karooooo Ltd. is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for KARO's full-year earnings has moved 5.5% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that KARO has returned about 4.7% since the start of the calendar year. At the same time, Computer and Technology stocks have gained an average of 1.5%. This shows that Karooooo Ltd. is outperforming its peers so far this year.

Another stock in the Computer and Technology sector, Allegro MicroSystems, Inc. (ALGM - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 42.1%.

For Allegro MicroSystems, Inc., the consensus EPS estimate for the current year has increased 21.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Karooooo Ltd. belongs to the Internet - Software industry, a group that includes 169 individual companies and currently sits at #52 in the Zacks Industry Rank. On average, this group has gained an average of 12.9% so far this year, meaning that KARO is slightly underperforming its industry in terms of year-to-date returns.

In contrast, Allegro MicroSystems, Inc. falls under the Electronics - Semiconductors industry. Currently, this industry has 45 stocks and is ranked #82. Since the beginning of the year, the industry has moved +6.1%.

Investors with an interest in Computer and Technology stocks should continue to track Karooooo Ltd. and Allegro MicroSystems, Inc.. These stocks will be looking to continue their solid performance.

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