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Is eGain (EGAN) Stock Outpacing Its Computer and Technology Peers This Year?

Zacks Equity Research
Barnes Group (B) delivered earnings and revenue surprises of 3.70% and -0.43%, respectively, for the quarter ended December 2018. Do the numbers hold clues to what lies ahead for the stock?

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. Is eGain (EGAN) one of those stocks right now? 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.

eGain is a member of our Computer and Technology group, which includes 647 different companies and currently sits at #3 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. EGAN is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for EGAN's full-year earnings has moved 133.33% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, EGAN has gained about 8.07% so far this year. At the same time, Computer and Technology stocks have gained an average of 4.25%. As we can see, eGain is performing better than its sector in the calendar year.

To break things down more, EGAN belongs to the Internet - Software industry, a group that includes 83 individual companies and currently sits at #28 in the Zacks Industry Rank. On average, stocks in this group have gained 8.25% this year, meaning that EGAN is slightly underperforming its industry in terms of year-to-date returns.

Investors in the Computer and Technology sector will want to keep a close eye on EGAN as it attempts to continue its solid performance.


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