Are Computer and Technology Stocks Lagging Bentley Systems (BSY) 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. Bentley Systems, Incorporated (BSY) 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.

Bentley Systems, Incorporated is a member of the Computer and Technology sector. This group includes 607 individual stocks and currently holds a Zacks Sector Rank of #5. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

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. Bentley Systems, Incorporated is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for BSY's full-year earnings has moved 4.3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, BSY has moved about 18.5% on a year-to-date basis. In comparison, Computer and Technology companies have returned an average of 8.2%. This means that Bentley Systems, Incorporated 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 Flex (FLEX). The stock is up 34.6% year-to-date.

In Flex's case, the consensus EPS estimate for the current year increased 1.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Bentley Systems, Incorporated is a member of the Internet - Software industry, which includes 173 individual companies and currently sits at #47 in the Zacks Industry Rank. This group has gained an average of 16.2% so far this year, so BSY is performing better in this area.

Flex, however, belongs to the Electronics - Miscellaneous Products industry. Currently, this 37-stock industry is ranked #165. The industry has moved +16.8% so far this year.

Bentley Systems, Incorporated and Flex 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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This article originally published on Zacks Investment Research (zacks.com).

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