Back to top

Image: Bigstock

Is FormFactor (FORM) Stock Outpacing Its Computer and Technology Peers This Year?

Read MoreHide Full Article

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. FormFactor (FORM - Free Report) 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? 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.

FormFactor is one of 617 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #6 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 is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. FormFactor is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for FORM's full-year earnings has moved 15% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, FORM has moved about 37% on a year-to-date basis. In comparison, Computer and Technology companies have returned an average of 22.1%. This means that FormFactor is outperforming the sector as a whole this year.

Another stock in the Computer and Technology sector, CyberArk (CYBR - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 22.2%.

For CyberArk, the consensus EPS estimate for the current year has increased 14.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, FormFactor belongs to the Electronics - Semiconductors industry, which includes 43 individual stocks and currently sits at #89 in the Zacks Industry Rank. On average, stocks in this group have lost 46.6% this year, meaning that FORM is performing better in terms of year-to-date returns.

In contrast, CyberArk falls under the Computers - IT Services industry. Currently, this industry has 39 stocks and is ranked #157. Since the beginning of the year, the industry has moved +32.6%.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


FormFactor, Inc. (FORM) - free report >>

CyberArk Software Ltd. (CYBR) - free report >>

Published in