The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Splunk (SPLK) 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? One simple way to answer this question is to take a look at the year-to-date performance of SPLK and the rest of the Computer and Technology group's stocks.
Splunk is one of 647 companies in the Computer and Technology group. The Computer and Technology group currently sits at #3 within 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 model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. SPLK is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for SPLK's full-year earnings has moved 6.96% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, SPLK has returned 9.03% so far this year. In comparison, Computer and Technology companies have returned an average of 2.50%. This means that Splunk is outperforming the sector as a whole this year.
Breaking things down more, SPLK is a member of the Internet - Software industry, which includes 83 individual companies and currently sits at #36 in the Zacks Industry Rank. Stocks in this group have gained about 6.81% so far this year, so SPLK is performing better this group in terms of year-to-date returns.
SPLK will likely be looking to continue its solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to the company.