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. Fortinet (FTNT - 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? 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.
Fortinet is one of 642 companies in the Computer and Technology group. The Computer and Technology group currently sits at #8 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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. FTNT is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for FTNT's full-year earnings has moved 9.49% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that FTNT has returned about 17.11% since the start of the calendar year. Meanwhile, stocks in the Computer and Technology group have gained about 12.55% on average. As we can see, Fortinet is performing better than its sector in the calendar year.
To break things down more, FTNT belongs to the Security industry, a group that includes 11 individual companies and currently sits at #16 in the Zacks Industry Rank. On average, stocks in this group have gained 19.77% this year, meaning that FTNT is slightly underperforming its industry in terms of year-to-date returns.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to FTNT as it looks to continue its solid performance.