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. TESSCO Technologies (TESS) 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? 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.
TESSCO Technologies is one of 642 companies in the Computer and Technology group. The Computer and Technology group currently sits at #8 within 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. TESS is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for TESS's full-year earnings has moved 22.58% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, TESS has moved about 33.75% on a year-to-date basis. Meanwhile, stocks in the Computer and Technology group have gained about 17.97% on average. This shows that TESSCO Technologies is outperforming its peers so far this year.
Looking more specifically, TESS belongs to the Communication - Components industry, which includes 24 individual stocks and currently sits at #8 in the Zacks Industry Rank. This group has gained an average of 24.50% so far this year, so TESS is performing better in this area.
Investors in the Computer and Technology sector will want to keep a close eye on TESS as it attempts to continue its solid performance.
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