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. Chegg (CHGG) 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? 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 613 companies in the Computer and Technology group. The Computer and Technology group currently sits at #6 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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. CHGG is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for CHGG's full-year earnings has moved 37.16% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that CHGG has returned about 61.12% since the start of the calendar year. Meanwhile, stocks in the Computer and Technology group have gained about 4.84% on average. As we can see, Chegg is performing better than its sector in the calendar year.
Looking more specifically, CHGG belongs to the Internet - Software industry, a group that includes 90 individual stocks and currently sits at #33 in the Zacks Industry Rank. This group has gained an average of 32.90% so far this year, so CHGG is performing better in this area.
Investors with an interest in Computer and Technology stocks should continue to track CHGG. The stock will be looking to continue its solid performance.
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