Is Fastly (FSLY) Stock Outpacing Its Computer and Technology Peers This Year?
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. Is Fastly (FSLY) one of those stocks right now? 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.
Fastly is one of 646 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #7 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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. Fastly is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for FSLY's full-year earnings has moved 14.9% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, FSLY has moved about 95.7% on a year-to-date basis. Meanwhile, stocks in the Computer and Technology group have gained about 18.1% on average. This shows that Fastly is outperforming its peers so far this year.
One other Computer and Technology stock that has outperformed the sector so far this year is Lattice Semiconductor (LSCC). The stock is up 39.9% year-to-date.
For Lattice Semiconductor, the consensus EPS estimate for the current year has increased 2.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Fastly is a member of the Internet - Software industry, which includes 146 individual companies and currently sits at #63 in the Zacks Industry Rank. Stocks in this group have gained about 25% so far this year, so FSLY is performing better this group in terms of year-to-date returns.
On the other hand, Lattice Semiconductor belongs to the Electronics - Semiconductors industry. This 39-stock industry is currently ranked #87. The industry has moved +25.4% year to date.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Fastly and Lattice Semiconductor as they could maintain their solid performance.
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