Is CrowdStrike (CRWD) 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. CrowdStrike Holdings (CRWD) 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.
CrowdStrike Holdings is one of 631 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #8 in 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 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. CrowdStrike Holdings is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for CRWD's full-year earnings has moved 163.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, CRWD has moved about 38.1% on a year-to-date basis. Meanwhile, the Computer and Technology sector has returned an average of 34.9% on a year-to-date basis. This means that CrowdStrike Holdings is performing better than its sector in terms of year-to-date returns.
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 37.3%.
The consensus estimate for nVent Electric's current year EPS has increased 5.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, CrowdStrike Holdings is a member of the Internet - Software industry, which includes 147 individual companies and currently sits at #85 in the Zacks Industry Rank. This group has gained an average of 41.9% so far this year, so CRWD is slightly underperforming its industry in this area.
On the other hand, nVent Electric belongs to the Electronics - Miscellaneous Components industry. This 31-stock industry is currently ranked #168. The industry has moved +9.5% year to date.
CrowdStrike Holdings and nVent Electric could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.
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