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. Universal Display (OLED - 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 OLED and the rest of the Computer and Technology group's stocks.
Universal Display is a member of our Computer and Technology group, which includes 637 different companies and currently sits at #7 in 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. OLED is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for OLED's full-year earnings has moved 20.32% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, OLED has returned 59.62% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 12.28% on average. As we can see, Universal Display is performing better than its sector in the calendar year.
To break things down more, OLED belongs to the Electronics - Miscellaneous Components industry, a group that includes 31 individual companies and currently sits at #141 in the Zacks Industry Rank. On average, stocks in this group have gained 13.79% this year, meaning that OLED 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 OLED as it attempts to continue its solid performance.