Are Computer and Technology Stocks Lagging InterDigital (IDCC) 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. InterDigital (IDCC) 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.

InterDigital is a member of the Computer and Technology sector. This group includes 618 individual stocks and currently holds a Zacks Sector Rank of #2. 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 model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. InterDigital is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for IDCC’s full-year earnings has moved 51.5% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, IDCC has gained about 77.8% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 33.3% on average. This means that InterDigital is outperforming the sector as a whole this year.

Another stock in the Computer and Technology sector, Garmin (GRMN), has outperformed the sector so far this year. The stock’s year-to-date return is 70.6%.

The consensus estimate for Garmin’s current year EPS has increased 15.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, InterDigital belongs to the Wireless Equipment industry, a group that includes 14 individual companies and currently sits at #51 in the Zacks Industry Rank. On average, this group has gained an average of 28.4% so far this year, meaning that IDCC is performing better in terms of year-to-date returns.

Garmin, however, belongs to the Electronics – Miscellaneous Products industry. Currently, this 36-stock industry is ranked #123. The industry has moved -18.9% so far this year.

Investors with an interest in Computer and Technology stocks should continue to track InterDigital and Garmin. These stocks will be looking to continue their solid performance.

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