For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Vertiv Holdings Co. (VRT) 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.
Vertiv Holdings Co. is a member of our Computer and Technology group, which includes 604 different companies and currently sits at #3 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. Vertiv Holdings Co. is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for VRT's full-year earnings has moved 7.8% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, VRT has returned 33.8% so far this year. In comparison, Computer and Technology companies have returned an average of 23.6%. As we can see, Vertiv Holdings Co. is performing better than its sector in the calendar year.
One other Computer and Technology stock that has outperformed the sector so far this year is InterDigital (IDCC). The stock is up 78.9% year-to-date.
For InterDigital, the consensus EPS estimate for the current year has increased 28.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Vertiv Holdings Co. belongs to the Computers - IT Services industry, which includes 43 individual stocks and currently sits at #82 in the Zacks Industry Rank. This group has lost an average of 14.1% so far this year, so VRT is performing better in this area.
On the other hand, InterDigital belongs to the Wireless Equipment industry. This 11-stock industry is currently ranked #49. The industry has moved +24.4% year to date.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Vertiv Holdings Co. and InterDigital as they could maintain their solid performance.
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Vertiv Holdings Co. (VRT): Free Stock Analysis Report InterDigital, Inc. (IDCC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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