The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Fabrinet (FN) 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.
Fabrinet is one of 596 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 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 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. Fabrinet is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for FN's full-year earnings has moved 0.5% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, FN has moved about 37.5% on a year-to-date basis. Meanwhile, the Computer and Technology sector has returned an average of 14.8% 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 Bandwidth (BAND). The stock has returned 214.4% year-to-date.
The consensus estimate for Bandwidth's current year EPS has increased 2.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Fabrinet is a member of the Electronics - Miscellaneous Components industry, which includes 27 individual companies and currently sits at #82 in the Zacks Industry Rank. This group has lost an average of 12.5% so far this year, so FN is performing better in this area.
Bandwidth, however, belongs to the Communication - Infrastructure industry. Currently, this 3-stock industry is ranked #12. The industry has moved +55.5% so far this year.
Investors interested in the Computer and Technology sector may want to keep a close eye on Fabrinet and Bandwidth as they attempt to continue their solid performance.
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Fabrinet (FN): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).