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Is Cloudflare (NET) Stock Outpacing Its Computer and Technology Peers This Year?

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The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Cloudflare (NET - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Cloudflare is a member of the Computer and Technology sector. This group includes 643 individual stocks and currently holds a Zacks Sector Rank of #10. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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. Cloudflare is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for NET's full-year earnings has moved 19.8% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that NET has returned about 38.2% since the start of the calendar year. Meanwhile, the Computer and Technology sector has returned an average of 18% on a year-to-date basis. This means that Cloudflare is outperforming the sector as a whole this year.

Another stock in the Computer and Technology sector, Nvidia (NVDA - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 85%.

The consensus estimate for Nvidia's current year EPS has increased 4.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Cloudflare belongs to the Internet - Software industry, which includes 146 individual stocks and currently sits at #66 in the Zacks Industry Rank. On average, this group has gained an average of 25.5% so far this year, meaning that NET is performing better in terms of year-to-date returns.

Nvidia, however, belongs to the Semiconductor - General industry. Currently, this 7-stock industry is ranked #188. The industry has moved +52.1% so far this year.

Investors interested in the Computer and Technology sector may want to keep a close eye on Cloudflare and Nvidia as they attempt to continue their solid performance.


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