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 Iridium Communications (IRDM – 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.
Iridium Communications is a member of our Computer and Technology group, which includes 665 different companies and currently sits at #10 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 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. Iridium Communications is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for IRDM’s full-year earnings has moved 35.7% higher. This shows that analyst sentiment has improved and the company’s earnings outlook is stronger.
Based on the latest available data, IRDM has gained about 6.1% so far this year. Meanwhile, the Computer and Technology sector has returned an average of -25.4% on a year-to-date basis. This means that Iridium Communications is outperforming the sector as a whole this year.
ePlus (PLUS – 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 0%.
Over the past three months, ePlus’ consensus EPS estimate for the current year has increased 3.5%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Iridium Communications belongs to the Satellite and Communication industry, a group that includes 8 individual stocks and currently sits at #52 in the Zacks Industry Rank. On average, stocks in this group have lost 22.2% this year, meaning that IRDM is performing better in terms of year-to-date returns.
In contrast, ePlus falls under the Business – Software Services industry. Currently, this industry has 9 stocks and is ranked #195. Since the beginning of the year, the industry has moved -30.8%.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Iridium Communications and ePlus as they could maintain their solid performance.