Is Genpact (G) Stock Outpacing Its Computer and Technology Peers This Year?

Zacks
09 Apr

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. Genpact (G) 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.

Genpact is a member of the Computer and Technology sector. This group includes 611 individual stocks and currently holds a Zacks Sector Rank of #6. 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. Genpact is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for G's full-year earnings has moved 4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that G has returned about 5% since the start of the calendar year. Meanwhile, the Computer and Technology sector has returned an average of -22.4% on a year-to-date basis. This means that Genpact is outperforming the sector as a whole this year.

Another Computer and Technology stock, which has outperformed the sector so far this year, is StoneCo Ltd. (STNE). The stock has returned 30.9% year-to-date.

Over the past three months, StoneCo Ltd.'s consensus EPS estimate for the current year has increased 5.3%. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Genpact belongs to the Computers - IT Services industry, which includes 40 individual stocks and currently sits at #92 in the Zacks Industry Rank. This group has lost an average of 22.9% so far this year, so G is performing better in this area.

In contrast, StoneCo Ltd. falls under the Internet - Software industry. Currently, this industry has 171 stocks and is ranked #78. Since the beginning of the year, the industry has moved -17.3%.

Genpact and StoneCo Ltd. 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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Genpact Limited (G) : Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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