Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Red Hat (RHT - 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? One simple way to answer this question is to take a look at the year-to-date performance of RHT and the rest of the Computer and Technology group's stocks.
Red Hat is one of 632 companies in the Computer and Technology group. The Computer and Technology group currently sits at #6 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. RHT is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for RHT's full-year earnings has moved 5.11% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, RHT has gained about 37.47% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 5.80% on average. This shows that Red Hat is outperforming its peers so far this year.
Looking more specifically, RHT belongs to the Computer - Software industry, which includes 51 individual stocks and currently sits at #54 in the Zacks Industry Rank. On average, this group has gained an average of 13.91% so far this year, meaning that RHT is performing better in terms of year-to-date returns.
Investors with an interest in Computer and Technology stocks should continue to track RHT. The stock will be looking to continue its solid performance.