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 Digi International (DGII) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Digi International is one of 591 companies in the Computer and Technology group. The Computer and Technology group currently sits at #1 within 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 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. Digi International is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for DGII's full-year earnings has moved 12.6% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, DGII has moved about 69.2% on a year-to-date basis. In comparison, Computer and Technology companies have returned an average of 15.8%. This means that Digi International is outperforming the sector as a whole this year.
Another stock in the Computer and Technology sector, Diebold Nixdorf, Incorporated (DBD), has outperformed the sector so far this year. The stock's year-to-date return is 22.9%.
In Diebold Nixdorf, Incorporated's case, the consensus EPS estimate for the current year increased 0.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Digi International belongs to the Computer - Networking industry, which includes 7 individual stocks and currently sits at #52 in the Zacks Industry Rank. On average, this group has gained an average of 52.8% so far this year, meaning that DGII is performing better in terms of year-to-date returns.
In contrast, Diebold Nixdorf, Incorporated falls under the Internet - Software industry. Currently, this industry has 169 stocks and is ranked #82. Since the beginning of the year, the industry has moved -14.3%.
Investors with an interest in Computer and Technology stocks should continue to track Digi International and Diebold Nixdorf, Incorporated. These stocks will be looking to continue their solid performance.
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Digi International Inc. (DGII): Free Stock Analysis Report
Diebold Nixdorf, Incorporated (DBD): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).