Is Cloudflare (NET) Outperforming Other Computer and Technology Stocks This Year?
The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Cloudflare (NET) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Cloudflare is one of 643 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #7 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. Cloudflare is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for NET's full-year earnings has moved 16.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, NET has gained about 27.5% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 19% on a year-to-date basis. This means that Cloudflare is performing better than its sector in terms of year-to-date returns.
One other Computer and Technology stock that has outperformed the sector so far this year is IHS Holding (IHS). The stock is up 40% year-to-date.
In IHS Holding's case, the consensus EPS estimate for the current year increased 2.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Cloudflare belongs to the Internet - Software industry, a group that includes 146 individual companies and currently sits at #49 in the Zacks Industry Rank. Stocks in this group have gained about 26.6% so far this year, so NET is performing better this group in terms of year-to-date returns.
On the other hand, IHS Holding belongs to the Communication - Infrastructure industry. This 7-stock industry is currently ranked #234. The industry has moved +3% year to date.
Investors interested in the Computer and Technology sector may want to keep a close eye on Cloudflare and IHS Holding as they attempt to continue their solid performance.
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Cloudflare, Inc. (NET) : Free Stock Analysis Report
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