For those looking to find strong computer and technology stocks, it’s wise to look for companies in a group that are outperforming their peers. Has Microsoft (MSFT) been one of those stocks this year? Let’s take a closer look at the stock’s year-to-date performance to find out.
Microsoft is a member of the Computers and Technology sector. This group includes 622 individual stocks and currently holds a Zacks Sector Rank #6. The Zacks Sector Rank includes 16 different groups and is ranked from best to worst in terms of the average Zacks Rank of individual companies within each of these sectors.
The Zacks Rank is a successful stock selection model that emphasizes earnings estimates and revisions to estimates. The system highlights a number of different stocks that could outperform the broader market in the next one to three months. Microsoft currently has a Zacks Rank #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for MSFT’s full-year earnings has risen 4.5% higher. This means analyst sentiment is stronger and the stock’s earnings outlook is improving.
According to our latest data, MSFT is up about 13.1% year-to-date. In the meantime, shares in the Computers and Technologies group rose by around 11.6% on average. This means that Microsoft is outperforming the sector as a whole this year.
Another stock in the computer and technology sector, AppFolio ( APPF ), has outperformed the sector so far this year. The share’s return since the beginning of the year is 28.7%.
In AppFolio’s case, the consensus EPS estimate for the current year has risen 49.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Microsoft belongs to the Computer Software industry, a group that includes 36 individual stocks and is currently ranked #45 on the Zacks Industry Rank. Stocks in this group have gained around 12.6% so far this year, so MSFT is outperforming this group in terms of year-to-date returns.
In contrast, AppFolio belongs to the Internet software industry. Currently, this industry has 145 stocks and is ranked 41st. Since the beginning of the year, the industry has grown +17.7%.
Microsoft and AppFolio could continue to post solid results, so investors interested in computer and technology stocks should continue to pay close attention to the stock.
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