Are Computer and Technology Stocks Lagging NetEase (NTES) This Year?
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. NetEase (NTES) 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.
NetEase is a member of our Computer and Technology group, which includes 631 different companies and currently sits at #8 in 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 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. NetEase is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for NTES' full-year earnings has moved 13.9% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, NTES has returned 36.1% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 32.6% on a year-to-date basis. This shows that NetEase is outperforming its peers so far this year.
Another stock in the Computer and Technology sector, nVent Electric (NVT), has outperformed the sector so far this year. The stock's year-to-date return is 34.3%.
For nVent Electric, 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).
To break things down more, NetEase belongs to the Internet - Software and Services industry, a group that includes 11 individual companies and currently sits at #21 in the Zacks Industry Rank. This group has gained an average of 19.3% so far this year, so NTES is performing better in this area.
nVent Electric, however, belongs to the Electronics - Miscellaneous Components industry. Currently, this 32-stock industry is ranked #183. The industry has moved +4.9% so far this year.
Investors with an interest in Computer and Technology stocks should continue to track NetEase and nVent Electric. These stocks will be looking to continue their solid performance.
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NetEase, Inc. (NTES) : Free Stock Analysis Report
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