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 BWX Technologies (BWXT) been one of those stocks this year? 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.
BWX Technologies is one of 665 companies in the Computer and Technology group. The Computer and Technology group currently sits at #10 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. BWX Technologies is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for BWXT’s full-year earnings has moved 3.2% higher. This shows that analyst sentiment has improved and the company’s earnings outlook is stronger.
Our latest available data shows that BWXT has returned about 14.1% since the start of the calendar year. In comparison, Computer and Technology companies have returned an average of -21.2%. This means that BWX Technologies is outperforming the sector as a whole this year.
Another stock in the Computer and Technology sector, CDK Global (CDK), has outperformed the sector so far this year. The stock’s year-to-date return is 30.2%.
For CDK Global, the consensus EPS estimate for the current year has increased 3.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, BWX Technologies belongs to the Electronics – Miscellaneous Components industry, a group that includes 27 individual companies and currently sits at #205 in the Zacks Industry Rank. On average, this group has lost an average of 21.3% so far this year, meaning that BWXT is performing better in terms of year-to-date returns.
CDK Global, however, belongs to the Computers – IT Services industry. Currently, this 40-stock industry is ranked #198. The industry has moved -27.4% so far this year.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to BWX Technologies and CDK Global as they could maintain their solid performance.
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