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 one of 654 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #6 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 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).
The Zacks Consensus Estimate for FICO’s full-year earnings has moved 1.3% higher within the past quarter. This shows that analyst sentiment has improved and the company’s earnings outlook is stronger.
According to our latest data, FICO has moved about 42.1% on a year-to-date basis. In comparison, Computer and Technology companies have returned an average of -31.5%. This means that Fair Isaac is performing better than its sector in terms of year-to-date returns.
GlobalFoundries Inc. (GFS) is another Computer and Technology stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 2.9%.
The consensus estimate for GlobalFoundries Inc.’s current year EPS has increased 14.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Fair Isaac belongs to the Computers – IT Services industry, a group that includes 40 individual stocks and currently sits at #68 in the Zacks Industry Rank. Stocks in this group have lost about 30.2% so far this year, so FICO is performing better this group in terms of year-to-date returns.
In contrast, GlobalFoundries Inc. falls under the Electronics – Semiconductors industry. Currently, this industry has 41 stocks and is ranked #155. Since the beginning of the year, the industry has moved -26.6%.
Fair Isaac and GlobalFoundries Inc. 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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