Investors focused on the Computer and Technology space have likely heard of Chegg (CHGG), but is the stock performing well in comparison to the rest of its sector peers? One simple way to answer this question is to take a look at the year-to-date performance of CHGG and the rest of the Computer and Technology group's stocks.
Chegg is one of 633 companies in the Computer and Technology group. The Computer and Technology group currently sits at #7 within 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 model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. CHGG is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for CHGG's full-year earnings has moved 16.84% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, CHGG has gained about 7.28% so far this year. In comparison, Computer and Technology companies have returned an average of 21.66%. As we can see, Chegg is performing better than its sector in the calendar year.
To break things down more, CHGG belongs to the Internet - Software industry, a group that includes 91 individual companies and currently sits at #88 in the Zacks Industry Rank. This group has gained an average of 20.59% so far this year, so CHGG is slightly underperforming its industry in this area.
CHGG 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.
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