Yahoo Finance Is NetEase (NTES) Stock Outpacing Its Computer and Technology Peers This Year?
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. NetEase (NTES) 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.
NetEase is a member of the Computer and Technology sector. This group includes 631 individual stocks and currently holds a Zacks Sector Rank of #7. 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. NetEase is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for NTES' full-year earnings has moved 15.5% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that NTES has returned about 40.2% since the start of the calendar year. Meanwhile, the Computer and Technology sector has returned an average of 35.2% on a year-to-date basis. As we can see, NetEase is performing better than its sector in the calendar year.
Another stock in the Computer and Technology sector, Nvidia (NVDA), has outperformed the sector so far this year. The stock's year-to-date return is 212.5%.
The consensus estimate for Nvidia's current year EPS has increased 41.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, NetEase is a member of the Internet - Software and Services industry, which includes 12 individual companies and currently sits at #55 in the Zacks Industry Rank. Stocks in this group have gained about 19.9% so far this year, so NTES is performing better this group in terms of year-to-date returns.
Nvidia, however, belongs to the Semiconductor - General industry. Currently, this 8-stock industry is ranked #110. The industry has moved +122.7% so far this year.
NetEase and Nvidia could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NetEase, Inc. (NTES) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
