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. Twilio (TWLO - 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 TWLO and the rest of the Computer and Technology group's stocks.
Twilio is one of 659 companies in the Computer and Technology group. The Computer and Technology group currently sits at #5 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. TWLO is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for TWLO's full-year earnings has moved 10.71% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, TWLO has gained about 291.86% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 0.95% on average. This means that Twilio is performing better than its sector in terms of year-to-date returns.
Breaking things down more, TWLO is a member of the Internet - Software industry, which includes 89 individual companies and currently sits at #30 in the Zacks Industry Rank. On average, stocks in this group have gained 8.77% this year, meaning that TWLO is performing better in terms of year-to-date returns.
Investors with an interest in Computer and Technology stocks should continue to track TWLO. The stock will be looking to continue its solid performance.