Is Nova Ltd. (NVMI) Stock Outpacing Its Computer and Technology Peers This Year?
Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Nova Ltd. (NVMI) 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.
Nova Ltd. is a member of our Computer and Technology group, which includes 633 different companies and currently sits at #7 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Nova Ltd. is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for NVMI's full-year earnings has moved 11.2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, NVMI has gained about 44.5% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 40.2% on a year-to-date basis. As we can see, Nova Ltd. is performing better than its sector in the calendar year.
One other Computer and Technology stock that has outperformed the sector so far this year is nVent Electric (NVT). The stock is up 51.3% year-to-date.
The consensus estimate for nVent Electric's current year EPS has increased 5.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Nova Ltd. is a member of the Electronics - Semiconductors industry, which includes 41 individual companies and currently sits at #182 in the Zacks Industry Rank. On average, stocks in this group have gained 43.2% this year, meaning that NVMI is performing better in terms of year-to-date returns.
nVent Electric, however, belongs to the Electronics - Miscellaneous Components industry. Currently, this 31-stock industry is ranked #150. The industry has moved +9.9% so far this year.
Investors with an interest in Computer and Technology stocks should continue to track Nova Ltd. and nVent Electric. These stocks will be looking to continue their solid performance.
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