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. InterDigital (IDCC) 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.
InterDigital is a member of the Computer and Technology sector. This group includes 604 individual stocks and currently holds a Zacks Sector Rank of #2. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. InterDigital is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for IDCC's full-year earnings has moved 1.9% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, IDCC has gained about 78.6% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 23.3% on a year-to-date basis. This shows that InterDigital is outperforming its peers so far this year.
Another stock in the Computer and Technology sector, Corning (GLW), has outperformed the sector so far this year. The stock's year-to-date return is 73.3%.
In Corning's case, the consensus EPS estimate for the current year increased 2.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, InterDigital belongs to the Wireless Equipment industry, a group that includes 11 individual stocks and currently sits at #35 in the Zacks Industry Rank. On average, stocks in this group have gained 26.1% this year, meaning that IDCC is performing better in terms of year-to-date returns.
In contrast, Corning falls under the Communication - Components industry. Currently, this industry has 11 stocks and is ranked #36. Since the beginning of the year, the industry has moved +114.5%.
InterDigital and Corning could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.
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InterDigital, Inc. (IDCC): Free Stock Analysis Report Corning Incorporated (GLW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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