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. Is Avid Technology (AVID - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.
Avid Technology is one of 640 companies in the Computer and Technology group. The Computer and Technology group currently sits at #3 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 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. AVID is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for AVID's full-year earnings has moved 4% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that AVID has returned about 64.42% since the start of the calendar year. Meanwhile, the Computer and Technology sector has returned an average of 22.97% on a year-to-date basis. This means that Avid Technology is performing better than its sector in terms of year-to-date returns.
Breaking things down more, AVID is a member of the Computer - Software industry, which includes 48 individual companies and currently sits at #11 in the Zacks Industry Rank. On average, stocks in this group have gained 22.43% this year, meaning that AVID 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 AVID as it looks to continue its solid performance.