Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Is Microsoft (MSFT - 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.
Microsoft is one of 596 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #5 in 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. MSFT is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for MSFT's full-year earnings has moved 6.74% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, MSFT has gained about 23.81% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 2.57% on average. This means that Microsoft is outperforming the sector as a whole this year.
Breaking things down more, MSFT is a member of the Computer - Software industry, which includes 42 individual companies and currently sits at #92 in the Zacks Industry Rank. On average, stocks in this group have gained 18.33% this year, meaning that MSFT 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 MSFT as it looks to continue its solid performance.