Are Computer and Technology Stocks Lagging Dell Technologies (DELL) This Year?

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. Is Dell Technologies (DELL) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Dell Technologies is a member of our Computer and Technology group, which includes 606 different companies and currently sits at #2 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 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 outlooks. Dell Technologies is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for DELL's full-year earnings has moved 1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that DELL has returned about 29.9% since the start of the calendar year. Meanwhile, stocks in the Computer and Technology group have gained about 22.9% on average. This means that Dell Technologies is outperforming the sector as a whole this year.

Credo Technology Group Holding Ltd. (CRDO) is another Computer and Technology stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 115.6%.

In Credo Technology Group Holding Ltd.'s case, the consensus EPS estimate for the current year increased 15.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Dell Technologies is a member of the Computer - Micro Computers industry, which includes 4 individual companies and currently sits at #17 in the Zacks Industry Rank. Stocks in this group have gained about 2.6% so far this year, so DELL is performing better this group in terms of year-to-date returns.

In contrast, Credo Technology Group Holding Ltd. falls under the Electronics - Semiconductors industry. Currently, this industry has 45 stocks and is ranked #178. Since the beginning of the year, the industry has moved +34.6%.

Investors interested in the Computer and Technology sector may want to keep a close eye on Dell Technologies and Credo Technology Group Holding Ltd. as they attempt to continue their solid performance.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research