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Are Computer and Technology Stocks Lagging Infosys (INFY) 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 Infosys (INFY - Free Report) one of those stocks right now? 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.

Infosys is a member of our Computer and Technology group, which includes 617 different companies and currently sits at #8 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

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

Over the past three months, the Zacks Consensus Estimate for INFY's full-year earnings has moved 1.2% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, INFY has returned 15.9% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 15% on a year-to-date basis. This shows that Infosys is outperforming its peers so far this year.

One other Computer and Technology stock that has outperformed the sector so far this year is Magnite (MGNI - Free Report) . The stock is up 32.8% year-to-date.

In Magnite's case, the consensus EPS estimate for the current year increased 2.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Infosys belongs to the Computers - IT Services industry, a group that includes 38 individual companies and currently sits at #96 in the Zacks Industry Rank. This group has lost an average of 2.3% so far this year, so INFY is performing better in this area.

In contrast, Magnite falls under the Internet - Software industry. Currently, this industry has 141 stocks and is ranked #101. Since the beginning of the year, the industry has moved +9.5%.

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


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