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Are Computer and Technology Stocks Lagging Fortinet (FTNT) 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. Has Fortinet (FTNT - Free Report) been one of those stocks this year? 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.

Fortinet is a member of the Computer and Technology sector. This group includes 622 individual stocks and currently holds a Zacks Sector Rank of #5. 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. Fortinet is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for FTNT's full-year earnings has moved 18.5% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that FTNT has returned about 32.6% since the start of the calendar year. At the same time, Computer and Technology stocks have gained an average of 23.5%. This means that Fortinet is performing better than its sector in terms of year-to-date returns.

Another stock in the Computer and Technology sector, Fujifilm Holdings Corp. (FUJIY - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 27.7%.

In Fujifilm Holdings Corp.'s case, the consensus EPS estimate for the current year increased 7.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Fortinet belongs to the Internet - Software industry, a group that includes 143 individual companies and currently sits at #69 in the Zacks Industry Rank. Stocks in this group have gained about 22.1% so far this year, so FTNT is performing better this group in terms of year-to-date returns.

Fujifilm Holdings Corp. however, belongs to the Semiconductor Equipment - Photomasks industry. Currently, this 2-stock industry is ranked #99. The industry has moved -22.3% so far this year.

Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Fortinet and Fujifilm Holdings Corp. as they could maintain their solid performance.


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