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. GlobalFoundries Inc. (GFS) 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? Let's take a closer look at the stock's year-to-date performance to find out.
GlobalFoundries Inc. is a member of our Computer and Technology group, which includes 613 different companies and currently sits at #1 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. GlobalFoundries Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for GFS' full-year earnings has moved 0.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, GFS has gained about 97.3% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 16.6% on average. This means that GlobalFoundries Inc. is outperforming the sector as a whole this year.
Avnet (AVT) is another Computer and Technology stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 71.5%.
The consensus estimate for Avnet's current year EPS has increased 11.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, GlobalFoundries Inc. belongs to the Electronics - Semiconductors industry, which includes 50 individual stocks and currently sits at #41 in the Zacks Industry Rank. Stocks in this group have gained about 46% so far this year, so GFS is performing better this group in terms of year-to-date returns.
On the other hand, Avnet belongs to the Electronics - Parts Distribution industry. This 4-stock industry is currently ranked #23. The industry has moved +50.4% year to date.
Investors interested in the Computer and Technology sector may want to keep a close eye on GlobalFoundries Inc. and Avnet as they attempt to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).