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. Methode Electronics (MEI - 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 MEI and the rest of the Computer and Technology group's stocks.
Methode Electronics is a member of our Computer and Technology group, which includes 642 different companies and currently sits at #10 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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. MEI is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for MEI's full-year earnings has moved 10.73% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, MEI has moved about 18.64% on a year-to-date basis. In comparison, Computer and Technology companies have returned an average of 16.71%. This means that Methode Electronics is outperforming the sector as a whole this year.
Looking more specifically, MEI belongs to the Electronics - Connectors industry, which includes 3 individual stocks and currently sits at #12 in the Zacks Industry Rank. This group has gained an average of 16.60% so far this year, so MEI is performing better in this area.
MEI will likely be looking to continue its solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to the company.