Is Dell Technologies (DELL) 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. Dell Technologies (DELL) 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.
Dell Technologies is one of 628 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #6 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 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. Dell Technologies is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for DELL's full-year earnings has moved 16.8% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, DELL has gained about 64% so far this year. At the same time, Computer and Technology stocks have gained an average of 28.6%. This means that Dell Technologies is outperforming the sector as a whole this year.
One other Computer and Technology stock that has outperformed the sector so far this year is Aehr Test Systems (AEHR). The stock is up 48.2% year-to-date.
For Aehr Test Systems, the consensus EPS estimate for the current year has increased 3.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Dell Technologies is a member of the Computers - IT Services industry, which includes 39 individual companies and currently sits at #54 in the Zacks Industry Rank. On average, this group has gained an average of 12.2% so far this year, meaning that DELL is performing better in terms of year-to-date returns.
On the other hand, Aehr Test Systems belongs to the Electronics - Measuring Instruments industry. This 5-stock industry is currently ranked #36. The industry has moved -24.1% year to date.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Dell Technologies and Aehr Test Systems as they could maintain their solid performance.
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Dell Technologies Inc. (DELL) : Free Stock Analysis Report
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