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. Is American Software (AMSWA - Free Report) one of those stocks right now? 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.
American Software is one of 627 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 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. AMSWA is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for AMSWA's full-year earnings has moved 18.42% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, AMSWA has gained about 36.63% so far this year. At the same time, Computer and Technology stocks have gained an average of 11.14%. This shows that American Software is outperforming its peers so far this year.
Breaking things down more, AMSWA is a member of the Computer - Software industry, which includes 51 individual companies and currently sits at #103 in the Zacks Industry Rank. This group has gained an average of 23.16% so far this year, so AMSWA is performing better in this area.
AMSWA will likely be looking to continue its solid performance, so investors interested Computer and Technology stocks should continue to pay close attention to the company.