The Computer and Technology group has many great stocks, but investors should always look for companies that are outperforming their peers. Is Guidewire Software (GWRE) one of those stocks right now? By looking at the stock’s year-to-date performance compared to its Computer and Technology peers, we might be able to answer that question.
Guidewire Software is one of 605 companies in the Computer and Technology group. The Computer and Technology Group currently sits at #1 in the Zacks Sector Rank. The Zacks Sector Rank measures 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 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 prospects. Guidewire Software currently has a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for GWRE’s full-year earnings has moved 14.6% higher. This indicates that sentiment among analysts is improving and the stock’s earnings outlook is more positive.
Based on the latest available data, GWRE is up about 42.1% so far this year. By comparison, computer and technology companies have returned an average of 30.9%. As we can see, Guidewire Software is outperforming its sector this calendar year.
Another stock in the computer and technology sector, Lyft (LYFT), has outperformed the sector so far this year. The stock’s return this year is 55.2%.
The consensus estimate for Lyft’s EPS for this year has risen 41.1% over the past three months. The stock currently carries a Zacks Rank #2 (Buy).
To break things down further, Guidewire Software is a member of the Internet Software industry, which includes 168 individual companies and currently sits at #74 in the Zacks Industry Rank. On average, stocks in this group are up 21.3% this year, meaning GWRE is outperforming in terms of year-to-date returns.
Lyft, on the other hand, falls under the internet services industry. Currently, this sector has 35 stocks and is ranked at number 91. The sector is up +43.9% since the beginning of the year.
Going forward, investors interested in computer and technology stocks should continue to pay close attention to Guidewire Software and Lyft as they can maintain their solid performance.
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