Are Computer and Technology Stocks Lagging Fair Isaac (FICO) 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. Fair Isaac (FICO) 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.
Fair Isaac is a member of the Computer and Technology sector. This group includes 619 individual stocks and currently holds a Zacks Sector Rank of #3. 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 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. Fair Isaac is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for FICO’s full-year earnings has moved 0.3% higher. This shows that analyst sentiment has improved and the company’s earnings outlook is stronger.
According to our latest data, FICO has moved about 72.4% on a year-to-date basis. Meanwhile, the Computer and Technology sector has returned an average of 27.9% on a year-to-date basis. As we can see, Fair Isaac is performing better than its sector in the calendar year.
One other Computer and Technology stock that has outperformed the sector so far this year is Advantest Corp. (ATEYY). The stock is up 80.1% year-to-date.
The consensus estimate for Advantest Corp.’s current year EPS has increased 26% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Fair Isaac belongs to the Computers – IT Services industry, a group that includes 40 individual companies and currently sits at #46 in the Zacks Industry Rank. On average, stocks in this group have gained 7.9% this year, meaning that FICO is performing better in terms of year-to-date returns.
In contrast, Advantest Corp. falls under the Electronics – Measuring Instruments industry. Currently, this industry has 5 stocks and is ranked #98. Since the beginning of the year, the industry has moved -3.9%.
Fair Isaac and Advantest Corp. could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.
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