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Is HP (HPQ) Outperforming Other Computer and Technology Stocks 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. HP (HPQ - 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? One simple way to answer this question is to take a look at the year-to-date performance of HPQ and the rest of the Computer and Technology group's stocks.

HP is one of 638 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. HPQ is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for HPQ's full-year earnings has moved 1.67% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that HPQ has returned about 4.35% since the start of the calendar year. At the same time, Computer and Technology stocks have gained an average of 23.10%. This means that HP is performing better than its sector in terms of year-to-date returns.

Looking more specifically, HPQ belongs to the Computer - Mini computers industry, which includes 4 individual stocks and currently sits at #59 in the Zacks Industry Rank. On average, stocks in this group have gained 30.51% this year, meaning that HPQ is slightly underperforming its industry in terms of year-to-date returns.

HPQ will likely be looking to continue its solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to the company.


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