U.S. Markets closed

Is New Relic (NEWR) Outperforming Other Computer and Technology Stocks This Year?

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

Investors focused on the Computer and Technology space have likely heard of New Relic (NEWR), but is the stock performing well in comparison to the rest of its sector peers? One simple way to answer this question is to take a look at the year-to-date performance of NEWR and the rest of the Computer and Technology group's stocks.

New Relic is a member of our Computer and Technology group, which includes 645 different companies and currently sits at #4 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 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. NEWR is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for NEWR's full-year earnings has moved 15.27% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, NEWR has gained about 32.25% so far this year. At the same time, Computer and Technology stocks have gained an average of 11.66%. This means that New Relic is outperforming the sector as a whole this year.

Looking more specifically, NEWR belongs to the Internet - Software industry, a group that includes 84 individual stocks and currently sits at #25 in the Zacks Industry Rank. This group has gained an average of 21.55% so far this year, so NEWR is performing better in this area.

Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to NEWR as it looks 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
 
New Relic, Inc. (NEWR) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research