The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Twitter (TWTR - 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.
Twitter is a member of our Computer and Technology group, which includes 637 different companies and currently sits at #8 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. TWTR is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for TWTR's full-year earnings has moved 37.50% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, TWTR has returned 26.44% so far this year. In comparison, Computer and Technology companies have returned an average of 16.86%. This means that Twitter is outperforming the sector as a whole this year.
Looking more specifically, TWTR belongs to the Internet - Software industry, which includes 83 individual stocks and currently sits at #74 in the Zacks Industry Rank. On average, this group has gained an average of 33.49% so far this year, meaning that TWTR is slightly underperforming its industry in terms of year-to-date returns.
TWTR 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.