Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Domo (DOMO) 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.
Domo is a member of the Computer and Technology sector. This group includes 609 individual stocks and currently holds a Zacks Sector Rank of #9. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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. Domo is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for DOMO's full-year earnings has moved 5.4% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, DOMO has returned 6.4% so far this year. Meanwhile, stocks in the Computer and Technology group have lost about 8.9% on average. This means that Domo is performing better than its sector in terms of year-to-date returns.
Automatic Data Processing (ADP) 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 2%.
The consensus estimate for Automatic Data Processing's current year EPS has increased 0.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Domo belongs to the Internet - Software industry, a group that includes 168 individual companies and currently sits at #143 in the Zacks Industry Rank. On average, stocks in this group have lost 3.1% this year, meaning that DOMO is performing better in terms of year-to-date returns. Automatic Data Processing is also part of the same industry.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Domo and Automatic Data Processing as they could maintain their solid performance.
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Domo, Inc. (DOMO): Free Stock Analysis Report Automatic Data Processing, Inc. (ADP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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