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Is Magic Software Enterprises (MGIC) Outperforming Other Computer and Technology Stocks This Year?

Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Magic Software (MGIC) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? 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.

Magic Software is one of 619 companies in the Computer and Technology group. The Computer and Technology group currently sits at #10 within 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 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. Magic Software is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for MGIC's full-year earnings has moved 2.2% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

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Based on the most recent data, MGIC has returned 10.2% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 8.5% on average. As we can see, Magic Software is performing better than its sector in the calendar year.

Another stock in the Computer and Technology sector, HUYA Inc. Sponsored ADR (HUYA), has outperformed the sector so far this year. The stock's year-to-date return is 18.3%.

The consensus estimate for HUYA Inc. Sponsored ADR's current year EPS has increased 1050% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Magic Software belongs to the Computer - Software industry, a group that includes 35 individual companies and currently sits at #64 in the Zacks Industry Rank. On average, this group has gained an average of 9.7% so far this year, meaning that MGIC is performing better in terms of year-to-date returns.

In contrast, HUYA Inc. Sponsored ADR falls under the Internet - Software and Services industry. Currently, this industry has 12 stocks and is ranked #13. Since the beginning of the year, the industry has moved +0.4%.

Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Magic Software and HUYA Inc. Sponsored ADR as they could maintain their solid performance.

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Magic Software Enterprises Ltd. (MGIC) : Free Stock Analysis Report

HUYA Inc. Sponsored ADR (HUYA) : Free Stock Analysis Report

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Zacks Investment Research