The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Vipshop Holdings Limited (VIPS) 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? Let's take a closer look at the stock's year-to-date performance to find out.
Vipshop Holdings Limited is one of 604 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #5 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 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. Vipshop Holdings Limited is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for VIPS' full-year earnings has moved 1.7% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, VIPS has returned 22.7% so far this year. At the same time, Computer and Technology stocks have lost an average of 9.7%. This means that Vipshop Holdings Limited is performing better than its sector in terms of year-to-date returns.
One other Computer and Technology stock that has outperformed the sector so far this year is Crexendo (CXDO). The stock is up 13.6% year-to-date.
Over the past three months, Crexendo's consensus EPS estimate for the current year has increased 32%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Vipshop Holdings Limited belongs to the Internet - Delivery Services industry, a group that includes 5 individual stocks and currently sits at #87 in the Zacks Industry Rank. This group has lost an average of 10.8% so far this year, so VIPS is performing better in this area.
Crexendo, however, belongs to the Internet - Services industry. Currently, this 34-stock industry is ranked #131. The industry has moved -11.1% so far this year.
Vipshop Holdings Limited and Crexendo could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.
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This article originally published on Zacks Investment Research (zacks.com).
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