The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Fastly (FSLY) 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? 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.
Fastly is one of 619 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #3 in the Zacks Sector Rank. 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 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. Fastly is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for FSLY's full-year earnings has moved 41.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, FSLY has gained about 120.7% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 15.8% on average. This means that Fastly is performing better than its sector in terms of year-to-date returns.
Another stock in the Computer and Technology sector, Arrow Electronics (ARW), has outperformed the sector so far this year. The stock's year-to-date return is 94.8%.
Over the past three months, Arrow Electronics' consensus EPS estimate for the current year has increased 10.9%. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Fastly is a member of the Internet - Software industry, which includes 178 individual companies and currently sits at #77 in the Zacks Industry Rank. Stocks in this group have gained about 3.7% so far this year, so FSLY is performing better this group in terms of year-to-date returns.
On the other hand, Arrow Electronics belongs to the Electronics - Parts Distribution industry. This 4-stock industry is currently ranked #3. The industry has moved +62.5% year to date.
Investors interested in the Computer and Technology sector may want to keep a close eye on Fastly and Arrow Electronics as they attempt to continue their solid performance.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This innovative software-as-a-service firm upped its user base +22% year over year. That rate is increasing and margins are expanding as AI efficiencies take effect. Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
Free: See Our Top Stock And 4 Runners UpWant 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
Fastly, Inc. (FSLY): Free Stock Analysis Report
Arrow Electronics, Inc. (ARW): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).