The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Hewlett Packard Enterprise (HPE) been one of those stocks this year? 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.
Hewlett Packard Enterprise is a member of our Computer and Technology group, which includes 665 different companies and currently sits at #11 in the Zacks Sector Rank. 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. Hewlett Packard Enterprise is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for HPE’s full-year earnings has moved 26.9% higher. This shows that analyst sentiment has improved and the company’s earnings outlook is stronger.
According to our latest data, HPE has moved about 7.1% on a year-to-date basis. Meanwhile, the Computer and Technology sector has returned an average of -4.2% on a year-to-date basis. This means that Hewlett Packard Enterprise is performing better than its sector in terms of year-to-date returns.
Another stock in the Computer and Technology sector, Maxar Technologies (MAXR), has outperformed the sector so far this year. The stock’s year-to-date return is 0.8%.
The consensus estimate for Maxar Technologies’ current year EPS has increased 8.1% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Hewlett Packard Enterprise belongs to the Computer – Integrated Systems industry, a group that includes 7 individual companies and currently sits at #80 in the Zacks Industry Rank. Stocks in this group have gained about 0.8% so far this year, so HPE is performing better this group in terms of year-to-date returns.
In contrast, Maxar Technologies falls under the Satellite and Communication industry. Currently, this industry has 8 stocks and is ranked #31. Since the beginning of the year, the industry has moved -2.4%.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Hewlett Packard Enterprise and Maxar Technologies as they could maintain their solid performance.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.