Is Cloudflare (NET) Stock Outpacing Its Computer and Technology Peers 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. Is Cloudflare (NET) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Cloudflare is a member of the Computer and Technology sector. This group includes 643 individual stocks and currently holds a Zacks Sector Rank of #10. 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. Cloudflare is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for NET's full-year earnings has moved 19.8% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that NET has returned about 38.2% since the start of the calendar year. Meanwhile, the Computer and Technology sector has returned an average of 18% on a year-to-date basis. This means that Cloudflare is outperforming the sector as a whole this year.
Another stock in the Computer and Technology sector, Nvidia (NVDA), has outperformed the sector so far this year. The stock's year-to-date return is 85%.
The consensus estimate for Nvidia's current year EPS has increased 4.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Cloudflare belongs to the Internet - Software industry, which includes 146 individual stocks and currently sits at #66 in the Zacks Industry Rank. On average, this group has gained an average of 25.5% so far this year, meaning that NET is performing better in terms of year-to-date returns.
Nvidia, however, belongs to the Semiconductor - General industry. Currently, this 7-stock industry is ranked #188. The industry has moved +52.1% so far this year.
Investors interested in the Computer and Technology sector may want to keep a close eye on Cloudflare and Nvidia as they attempt to continue their solid performance.
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