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. Facebook (FB - 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 FB and the rest of the Computer and Technology group's stocks.
Facebook is a member of our Computer and Technology group, which includes 648 different companies and currently sits 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. FB is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for FB's full-year earnings has moved 2.51% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, FB has returned 29.11% so far this year. In comparison, Computer and Technology companies have returned an average of 10.42%. This means that Facebook is outperforming the sector as a whole this year.
To break things down more, FB belongs to the Internet - Services industry, a group that includes 51 individual companies and currently sits at #97 in the Zacks Industry Rank. On average, this group has gained an average of 13.39% so far this year, meaning that FB is performing better in terms of year-to-date returns.
Investors in the Computer and Technology sector will want to keep a close eye on FB as it attempts to continue its solid performance.