The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Dropbox (DBX - 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 DBX and the rest of the Computer and Technology group's stocks.
Dropbox is one of 613 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #2 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 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. DBX is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for DBX's full-year earnings has moved 271.43% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, DBX has gained about 20.16% so far this year. Meanwhile, the Computer and Technology sector has returned an average of -1.84% on a year-to-date basis. This means that Dropbox is performing better than its sector in terms of year-to-date returns.
Looking more specifically, DBX belongs to the Internet - Services industry, a group that includes 49 individual stocks and currently sits at #31 in the Zacks Industry Rank. On average, this group has gained an average of 1.61% so far this year, meaning that DBX is performing better in terms of year-to-date returns.
DBX 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.