Is Elastic (ESTC) Stock Outpacing Its Computer and Technology Peers 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. Has Elastic (ESTC) been one of those stocks this year? 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.

Elastic is one of 614 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #2 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 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. Elastic is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for ESTC's full-year earnings has moved 63.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, ESTC has gained about 29.3% so far this year. At the same time, Computer and Technology stocks have gained an average of 16.8%. This means that Elastic is performing better than its sector in terms of year-to-date returns.

Another stock in the Computer and Technology sector, Cognex Corporation (CGNX), has outperformed the sector so far this year. The stock's year-to-date return is 69.4%.

The consensus estimate for Cognex Corporation's current year EPS has increased 16.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Elastic belongs to the Internet - Software industry, a group that includes 174 individual companies and currently sits at #73 in the Zacks Industry Rank. Stocks in this group have lost about 0.8% so far this year, so ESTC is performing better this group in terms of year-to-date returns.

In contrast, Cognex Corporation falls under the Electronics - Testing Equipment industry. Currently, this industry has 4 stocks and is ranked #21. Since the beginning of the year, the industry has moved +17.9%.

Investors interested in the Computer and Technology sector may want to keep a close eye on Elastic and Cognex Corporation as they attempt to continue their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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