Is NetEase (NTES) 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. Is NetEase (NTES) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.
NetEase is a member of our Computer and Technology group, which includes 608 different companies and currently sits at #7 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 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. NetEase is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for NTES' full-year earnings has moved 12.1% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, NTES has moved about 49.1% on a year-to-date basis. Meanwhile, stocks in the Computer and Technology group have gained about 2.1% on average. This means that NetEase is performing better than its sector in terms of year-to-date returns.
One other Computer and Technology stock that has outperformed the sector so far this year is Internet Initiative Japan (IIJIY). The stock is up 7.2% year-to-date.
For Internet Initiative Japan, the consensus EPS estimate for the current year has increased 2.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, NetEase belongs to the Internet - Software and Services industry, a group that includes 10 individual companies and currently sits at #54 in the Zacks Industry Rank. This group has gained an average of 26.7% so far this year, so NTES is performing better in this area.
On the other hand, Internet Initiative Japan belongs to the Internet - Services industry. This 36-stock industry is currently ranked #140. The industry has moved -4.3% year to date.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to NetEase and Internet Initiative Japan as they could maintain their solid performance.
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NetEase, Inc. (NTES) : Free Stock Analysis Report
Internet Initiative Japan, Inc. (IIJIY) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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