Is Microsoft (MSFT) Outperforming Other Computer and Technology Stocks This Year?

Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Is Microsoft (MSFT) one of those stocks right now? 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.

Microsoft is one of 609 companies in the Computer and Technology group. The Computer and Technology group currently sits at #4 within the Zacks Sector Rank. 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. Microsoft is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for MSFT's full-year earnings has moved 1.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, MSFT has returned 18% so far this year. At the same time, Computer and Technology stocks have gained an average of 6.8%. As we can see, Microsoft 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 Advanced Energy Industries (AEIS). The stock is up 14.6% year-to-date.

For Advanced Energy Industries, the consensus EPS estimate for the current year has increased 4.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Microsoft belongs to the Computer - Software industry, a group that includes 30 individual companies and currently sits at #38 in the Zacks Industry Rank. This group has gained an average of 15.6% so far this year, so MSFT is performing better in this area.

In contrast, Advanced Energy Industries falls under the Semiconductor Equipment - Wafer Fabrication industry. Currently, this industry has 2 stocks and is ranked #13. Since the beginning of the year, the industry has moved +15.6%.

Investors interested in the Computer and Technology sector may want to keep a close eye on Microsoft and Advanced Energy Industries 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