U.S. Markets closed

Is Facebook (FB) Stock Outpacing Its Computer and Technology Peers This Year?

Zacks Equity Research
Xcel (XEL) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Facebook (FB) been one of those stocks this year? 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.

Facebook is one of 640 companies in the Computer and Technology group. The Computer and Technology group currently sits at #4 within 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. FB is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for FB's full-year earnings has moved 3.06% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, FB has moved about 39.28% on a year-to-date basis. At the same time, Computer and Technology stocks have gained an average of 23.98%. As we can see, Facebook is performing better than its sector in the calendar year.

To break things down more, FB belongs to the Internet - Services industry, a group that includes 50 individual companies and currently sits at #153 in the Zacks Industry Rank. Stocks in this group have gained about 25.44% so far this year, so FB is performing better this group in terms of year-to-date returns.

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


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Facebook, Inc. (FB) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.