Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Synopsys (SNPS) 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 SNPS and the rest of the Computer and Technology group's stocks.
Synopsys is one of 630 companies in the Computer and Technology group. The Computer and Technology group currently sits at #5 within 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 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. SNPS is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for SNPS's full-year earnings has moved 10.59% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, SNPS has gained about 6.65% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 3.55% on a year-to-date basis. As we can see, Synopsys is performing better than its sector in the calendar year.
Looking more specifically, SNPS belongs to the Computer - Software industry, which includes 43 individual stocks and currently sits at #88 in the Zacks Industry Rank. This group has gained an average of 3.16% so far this year, so SNPS is performing better in this area.
Investors in the Computer and Technology sector will want to keep a close eye on SNPS as it attempts to continue its solid performance.
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