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 International Business Machines (IBM) one of those stocks right now? 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.
International Business Machines is one of 630 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #3 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. IBM is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for IBM's full-year earnings has moved 1.34% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, IBM has gained about 12.55% so far this year. At the same time, Computer and Technology stocks have gained an average of 10.27%. This means that International Business Machines is outperforming the sector as a whole this year.
Looking more specifically, IBM belongs to the Computer - Integrated Systems industry, a group that includes 8 individual stocks and currently sits at #89 in the Zacks Industry Rank. On average, this group has gained an average of 9.92% so far this year, meaning that IBM is performing better in terms of year-to-date returns.
IBM will likely be looking to continue its solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to the company.