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Is Microsoft (MSFT) Stock Outpacing Its Computer and Technology Peers This Year?

Zacks Equity Research

Investors focused on the Computer and Technology space have likely heard of Microsoft (MSFT), but is the stock performing well in comparison to the rest of its sector peers? Let's take a closer look at the stock's year-to-date performance to find out.

Microsoft is one of 629 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #6 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 system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. MSFT is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for MSFT's full-year earnings has moved 2.44% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that MSFT has returned about 49.04% since the start of the calendar year. Meanwhile, the Computer and Technology sector has returned an average of 29.68% on a year-to-date basis. This shows that Microsoft is outperforming its peers so far this year.

Looking more specifically, MSFT belongs to the Computer - Software industry, a group that includes 46 individual stocks and currently sits at #86 in the Zacks Industry Rank. Stocks in this group have gained about 42.02% so far this year, so MSFT is performing better this group in terms of year-to-date returns.

Investors with an interest in Computer and Technology stocks should continue to track MSFT. The stock will be looking to continue its solid performance.


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