Is Garmin (GRMN) Outperforming Other Computer and Technology Stocks 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. Garmin (GRMN) 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? Let’s take a closer look at the stock’s year-to-date performance to find out.
Garmin is a member of the Computer and Technology sector. This group includes 618 individual stocks and currently holds a Zacks Sector Rank of #1. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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. Garmin is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for GRMN’s full-year earnings has moved 15.9% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that GRMN has returned about 64.2% since the start of the calendar year. Meanwhile, stocks in the Computer and Technology group have gained about 36.2% on average. As we can see, Garmin is performing better than its sector in the calendar year.
Another stock in the Computer and Technology sector, InterDigital (IDCC), has outperformed the sector so far this year. The stock’s year-to-date return is 77%.
The consensus estimate for InterDigital’s current year EPS has increased 51.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Garmin belongs to the Electronics – Miscellaneous Products industry, a group that includes 36 individual companies and currently sits at #151 in the Zacks Industry Rank. Stocks in this group have lost about 31.7% so far this year, so GRMN is performing better this group in terms of year-to-date returns.
InterDigital, however, belongs to the Wireless Equipment industry. Currently, this 14-stock industry is ranked #45. The industry has moved +27.7% so far this year.
Investors interested in the Computer and Technology sector may want to keep a close eye on Garmin and InterDigital as they attempt to continue their solid performance.
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