Are Computer and Technology Stocks Lagging Clearwater Analytics Holdings (CWAN) This Year?
The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Clearwater Analytics (CWAN) 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.
Clearwater Analytics is one of 619 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #2 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Clearwater Analytics is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for CWAN’s full-year earnings has moved 1.5% higher. This shows that analyst sentiment has improved and the company’s earnings outlook is stronger.
Based on the most recent data, CWAN has returned 55% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 29.1% on a year-to-date basis. This means that Clearwater Analytics is outperforming the sector as a whole this year.
Another stock in the Computer and Technology sector, AST SpaceMobile, Inc. (ASTS), has outperformed the sector so far this year. The stock’s year-to-date return is 294.9%.
Over the past three months, AST SpaceMobile, Inc.’s consensus EPS estimate for the current year has increased 48.7%. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Clearwater Analytics belongs to the Internet – Software industry, a group that includes 145 individual companies and currently sits at #39 in the Zacks Industry Rank. On average, stocks in this group have gained 33.3% this year, meaning that CWAN is performing better in terms of year-to-date returns.
In contrast, AST SpaceMobile, Inc. falls under the Wireless Equipment industry. Currently, this industry has 14 stocks and is ranked #47. Since the beginning of the year, the industry has moved +28.1%.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Clearwater Analytics and AST SpaceMobile, Inc. as they could maintain their solid performance.
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