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. Is Super Micro Computer (SMCI) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Super Micro Computer is one of 603 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #6 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 proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Super Micro Computer is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for SMCI's full-year earnings has moved 0.5% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that SMCI has returned about 21.5% since the start of the calendar year. At the same time, Computer and Technology stocks have lost an average of 8%. This shows that Super Micro Computer is outperforming its peers so far this year.
Another stock in the Computer and Technology sector, Crexendo (CXDO), has outperformed the sector so far this year. The stock's year-to-date return is 3.8%.
The consensus estimate for Crexendo's current year EPS has increased 32% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Super Micro Computer is a member of the Computer- Storage Devices industry, which includes 7 individual companies and currently sits at #33 in the Zacks Industry Rank. On average, this group has lost an average of 13.2% so far this year, meaning that SMCI is performing better in terms of year-to-date returns.
Crexendo, however, belongs to the Internet - Services industry. Currently, this 34-stock industry is ranked #131. The industry has moved -11% so far this year.
Investors interested in the Computer and Technology sector may want to keep a close eye on Super Micro Computer and Crexendo as they attempt to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).
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