Investors focused on the Computer and Technology space have likely heard of Alphabet (GOOGL), but is the stock performing well in comparison to the rest of its sector peers? By taking a look at the stock’s year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.
Alphabet is one of 620 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #10 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 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. GOOGL is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for GOOGL’s full-year earnings has moved 34.13{cb3fe4c54de06d7c4b8dceae281fb32e521027d1659af7adec2f427d2f5333d9} 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 GOOGL has returned about 36.52{cb3fe4c54de06d7c4b8dceae281fb32e521027d1659af7adec2f427d2f5333d9} since the start of the calendar year. Meanwhile, the Computer and Technology sector has returned an average of 15.32{cb3fe4c54de06d7c4b8dceae281fb32e521027d1659af7adec2f427d2f5333d9} on a year-to-date basis. This means that Alphabet is performing better than its sector in terms of year-to-date returns.
Looking more specifically, GOOGL belongs to the Internet – Services industry, a group that includes 49 individual stocks and currently sits at #163 in the Zacks Industry Rank. This group has gained an average of 28.36{cb3fe4c54de06d7c4b8dceae281fb32e521027d1659af7adec2f427d2f5333d9} so far this year, so GOOGL is performing better in this area.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to GOOGL as it looks to continue its solid performance.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
