The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. NetEase (NTES) 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.
NetEase is one of 630 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #5 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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. NTES is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for NTES's full-year earnings has moved 81.74% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that NTES has returned about 34.82% since the start of the calendar year. At the same time, Computer and Technology stocks have gained an average of 27.45%. As we can see, NetEase is performing better than its sector in the calendar year.
Breaking things down more, NTES is a member of the Internet - Software and Services industry, which includes 19 individual companies and currently sits at #62 in the Zacks Industry Rank. On average, stocks in this group have gained 35.79% this year, meaning that NTES is slightly underperforming its industry in terms of year-to-date returns.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to NTES as it looks to continue its solid performance.
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