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. CDK Global (CDK) 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? 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.
CDK Global is one of 667 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #7 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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. CDK Global is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for CDK’s full-year earnings has moved 0.1% higher. This means that analyst sentiment is stronger and the stock’s earnings outlook is improving.
Based on the most recent data, CDK has returned 29.4% so far this year. Meanwhile, the Computer and Technology sector has returned an average of -27.7% on a year-to-date basis. As we can see, CDK Global is performing better than its sector in the calendar year.
One other Computer and Technology stock that has outperformed the sector so far this year is Gree (GREZF). The stock is up 11.9% year-to-date.
Over the past three months, Gree’s consensus EPS estimate for the current year has increased 109.5%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, CDK Global belongs to the Computers – IT Services industry, a group that includes 40 individual stocks and currently sits at #165 in the Zacks Industry Rank. On average, this group has lost an average of 26.9% so far this year, meaning that CDK is performing better in terms of year-to-date returns.
In contrast, Gree falls under the Internet – Services industry. Currently, this industry has 48 stocks and is ranked #157. Since the beginning of the year, the industry has moved -25.5%.
CDK Global and Gree could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top buy-and-hold tickers for the entirety of 2022?
Last year’s 2021 Zacks Top 10 Stocks portfolio returned gains as high as +147.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.