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. Is Airbnb, Inc. (ABNB) one of those stocks right now? 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.
Airbnb, Inc. is one of 647 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #9 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. Airbnb, Inc. is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for ABNB’s full-year earnings has moved 267.1% higher. This shows that analyst sentiment has improved and the company’s earnings outlook is stronger.
Based on the latest available data, ABNB has gained about 23.2% so far this year. In comparison, Computer and Technology companies have returned an average of 22.4%. This means that Airbnb, Inc. is outperforming the sector as a whole this year.
One other Computer and Technology stock that has outperformed the sector so far this year is CDW (CDW). The stock is up 47.5% year-to-date.
The consensus estimate for CDW’s current year EPS has increased 2.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Airbnb, Inc. belongs to the Internet – Content industry, which includes 19 individual stocks and currently sits at #211 in the Zacks Industry Rank. This group has lost an average of 9.8% so far this year, so ABNB is performing better in this area.
CDW, however, belongs to the Computers – IT Services industry. Currently, this 38-stock industry is ranked #157. The industry has moved +9.9% so far this year.
Investors with an interest in Computer and Technology stocks should continue to track Airbnb, Inc. and CDW. These stocks will be looking to continue their solid performance.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.