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Is Tencent (TCEHY) Outperforming Other Computer and Technology Stocks This Year?

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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. Tencent Holding Ltd. (TCEHY - 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.

Tencent Holding Ltd. is a member of our Computer and Technology group, which includes 616 different companies and currently sits at #8 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 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. Tencent Holding Ltd. is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for TCEHY's full-year earnings has moved 4.8% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that TCEHY has returned about 51.6% since the start of the calendar year. Meanwhile, stocks in the Computer and Technology group have gained about 25.4% on average. This means that Tencent Holding Ltd. is performing better than its sector in terms of year-to-date returns.

Alps Electric (APELY - Free Report) is another Computer and Technology stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 30.1%.

For Alps Electric, the consensus EPS estimate for the current year has increased 78.1% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Tencent Holding Ltd. belongs to the Internet - Services industry, a group that includes 39 individual companies and currently sits at #138 in the Zacks Industry Rank. This group has gained an average of 15.5% so far this year, so TCEHY is performing better in this area.

Alps Electric, however, belongs to the Computer - Peripheral Equipment industry. Currently, this 9-stock industry is ranked #10. The industry has moved -24.9% so far this year.

Investors with an interest in Computer and Technology stocks should continue to track Tencent Holding Ltd. and Alps Electric. These stocks will be looking to continue their solid performance.


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