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Is Guidewire Software (GWRE) Outperforming 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. Is Guidewire Software (GWRE - 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.

Guidewire Software is one of 605 companies in the Computer and Technology group. The Computer and Technology group currently sits at #1 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 proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Guidewire Software is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for GWRE's full-year earnings has moved 14.6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, GWRE has gained about 42.1% so far this year. In comparison, Computer and Technology companies have returned an average of 30.9%. As we can see, Guidewire Software is performing better than its sector in the calendar year.

Another stock in the Computer and Technology sector, Lyft (LYFT - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 55.2%.

The consensus estimate for Lyft's current year EPS has increased 41.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Guidewire Software is a member of the Internet - Software industry, which includes 168 individual companies and currently sits at #74 in the Zacks Industry Rank. On average, stocks in this group have gained 21.3% this year, meaning that GWRE is performing better in terms of year-to-date returns.

In contrast, Lyft falls under the Internet - Services industry. Currently, this industry has 35 stocks and is ranked #91. Since the beginning of the year, the industry has moved +43.9%.

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


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