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. Has Kemet (KEM - Free Report) been one of those stocks this year? 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.
Kemet is one of 627 companies in the Computer and Technology group. The Computer and Technology group currently sits at #3 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. KEM is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for KEM's full-year earnings has moved 28.73% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, KEM has returned 76.83% so far this year. At the same time, Computer and Technology stocks have gained an average of 10.86%. This means that Kemet is outperforming the sector as a whole this year.
To break things down more, KEM belongs to the Electronics - Miscellaneous Components industry, a group that includes 34 individual companies and currently sits at #69 in the Zacks Industry Rank. On average, this group has gained an average of 3.43% so far this year, meaning that KEM is performing better in terms of year-to-date returns.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to KEM as it looks to continue its solid performance.