The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Fabrinet (FN) 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.
Fabrinet is one of 607 companies in the Computer and Technology group. The Computer and Technology group currently sits at #5 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. Fabrinet is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for FN's full-year earnings has moved 1.5% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, FN has gained about 30.4% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 7% on a year-to-date basis. This means that Fabrinet is performing better than its sector in terms of year-to-date returns.
Another Computer and Technology stock, which has outperformed the sector so far this year, is CSG Systems (CSGS). The stock has returned 28.4% year-to-date.
In CSG Systems' case, the consensus EPS estimate for the current year increased 1.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Fabrinet belongs to the Electronics - Miscellaneous Components industry, which includes 24 individual stocks and currently sits at #72 in the Zacks Industry Rank. On average, stocks in this group have gained 4.5% this year, meaning that FN is performing better in terms of year-to-date returns.
CSG Systems, however, belongs to the Computer - Services industry. Currently, this 9-stock industry is ranked #210. The industry has moved +5% so far this year.
Investors interested in the Computer and Technology sector may want to keep a close eye on Fabrinet and CSG Systems as they attempt to continue their solid performance.
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Fabrinet (FN): Free Stock Analysis Report CSG Systems International, Inc. (CSGS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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