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. Microsoft (MSFT - 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 MSFT and the rest of the Computer and Technology group's stocks.
Microsoft 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 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. MSFT is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for MSFT's full-year earnings has moved 2.68% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, MSFT has returned 35.26% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 20.33% on a year-to-date basis. This shows that Microsoft is outperforming its peers so far this year.
Breaking things down more, MSFT is a member of the Computer - Software industry, which includes 48 individual companies and currently sits at #79 in the Zacks Industry Rank. This group has gained an average of 29.39% so far this year, so MSFT is performing better in this area.
Investors with an interest in Computer and Technology stocks should continue to track MSFT. The stock will be looking to continue its solid performance.