Are Computer and Technology Stocks Lagging DigitalOcean (DOCN) This Year?
Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. DigitalOcean Holdings, Inc. (DOCN) 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? 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.
DigitalOcean Holdings, Inc. is one of 649 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 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. DigitalOcean Holdings, Inc. is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for DOCN's full-year earnings has moved 728.6% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, DOCN has gained about 30.9% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 10.2% on a year-to-date basis. As we can see, DigitalOcean Holdings, Inc. is performing better than its sector in the calendar year.
AU Optronics (AUOTY) is another Computer and Technology stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 34.5%.
For AU Optronics, the consensus EPS estimate for the current year has increased 4.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, DigitalOcean Holdings, Inc. belongs to the Internet - Software industry, a group that includes 148 individual stocks and currently sits at #69 in the Zacks Industry Rank. On average, stocks in this group have gained 19.2% this year, meaning that DOCN is performing better in terms of year-to-date returns.
AU Optronics, however, belongs to the Electronics - Miscellaneous Components industry. Currently, this 28-stock industry is ranked #153. The industry has moved +11.1% so far this year.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to DigitalOcean Holdings, Inc. and AU Optronics as they could maintain their solid performance.
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