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Is Digi International (DGII) Stock Outpacing Its Computer and Technology Peers This Year?

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For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Digi International (DGII - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.

Digi International is one of 601 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 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 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. Digi International is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for DGII's full-year earnings has moved 9.6% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, DGII has gained about 47.9% so far this year. In comparison, Computer and Technology companies have returned an average of 26.5%. This means that Digi International is performing better than its sector in terms of year-to-date returns.

Another Computer and Technology stock, which has outperformed the sector so far this year, is IBM (IBM - Free Report) . The stock has returned 37.7% year-to-date.

Over the past three months, IBM's consensus EPS estimate for the current year has increased 2.4%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Digi International belongs to the Computer - Networking industry, a group that includes 8 individual stocks and currently sits at #44 in the Zacks Industry Rank. Stocks in this group have gained about 31.4% so far this year, so DGII is performing better this group in terms of year-to-date returns.

IBM, however, belongs to the Computer - Integrated Systems industry. Currently, this 10-stock industry is ranked #20. The industry has moved +85.8% so far this year.

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


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