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 Chegg (CHGG) been one of those stocks this year? 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.
Chegg is one of 592 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 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 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. Chegg is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for CHGG's full-year earnings has moved 29% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, CHGG has gained about 20.4% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 17.2% on average. This means that Chegg is outperforming the sector as a whole this year.
Flex (FLEX) 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 149.6%.
In Flex's case, the consensus EPS estimate for the current year increased 26.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Chegg belongs to the Internet - Software industry, a group that includes 170 individual stocks and currently sits at #83 in the Zacks Industry Rank. This group has lost an average of 11.5% so far this year, so CHGG is performing better in this area.
On the other hand, Flex belongs to the Electronics - Miscellaneous Products industry. This 33-stock industry is currently ranked #62. The industry has moved +52.9% year to date.
Investors with an interest in Computer and Technology stocks should continue to track Chegg and Flex. These stocks will be looking to continue their solid performance.
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Chegg, Inc. (CHGG): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).