Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Is Automatic Data Processing (ADP) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.
Automatic Data Processing is a member of our Computer and Technology group, which includes 608 different companies and currently sits at #5 in the Zacks Sector Rank. 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 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. Automatic Data Processing is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for ADP's full-year earnings has moved 0.5% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, ADP has returned 11.6% so far this year. At the same time, Computer and Technology stocks have lost an average of 0.3%. This means that Automatic Data Processing is performing better than its sector in terms of year-to-date returns.
One other Computer and Technology stock that has outperformed the sector so far this year is Allegro MicroSystems, Inc. (ALGM). The stock is up 22.5% year-to-date.
For Allegro MicroSystems, Inc. the consensus EPS estimate for the current year has increased 10.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Automatic Data Processing belongs to the Internet - Software industry, a group that includes 169 individual stocks and currently sits at #61 in the Zacks Industry Rank. On average, stocks in this group have gained 10.6% this year, meaning that ADP is performing better in terms of year-to-date returns.
In contrast, Allegro MicroSystems, Inc. falls under the Electronics - Semiconductors industry. Currently, this industry has 45 stocks and is ranked #81. Since the beginning of the year, the industry has moved +4%.
Automatic Data Processing and Allegro MicroSystems, Inc. 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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Automatic Data Processing, Inc. (ADP): Free Stock Analysis Report Allegro MicroSystems, Inc. (ALGM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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