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Has Twitter (TWTR) Outpaced Other Computer and Technology Stocks This Year?

Zacks Equity Research
ChannelAdvisor (ECOM) has been upgraded to a Zacks Rank 1 (Strong Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.

Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Twitter (TWTR) 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 TWTR and the rest of the Computer and Technology group's stocks.

Twitter is a member of our Computer and Technology group, which includes 650 different companies and currently sits at #4 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 proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. TWTR is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for TWTR's full-year earnings has moved 34.13% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, TWTR has gained about 9.05% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 1.55% on a year-to-date basis. This means that Twitter is performing better than its sector in terms of year-to-date returns.

Looking more specifically, TWTR belongs to the Internet - Software industry, a group that includes 84 individual stocks and currently sits at #48 in the Zacks Industry Rank. On average, stocks in this group have gained 4.98% this year, meaning that TWTR is performing better in terms of year-to-date returns.

TWTR 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.

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