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. Genpact (G) 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? Let's take a closer look at the stock's year-to-date performance to find out.
Genpact is a member of the Computer and Technology sector. This group includes 611 individual stocks and currently holds a Zacks Sector Rank of #6. 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 represents an effective stock-selection framework that prioritizes earnings forecasts and adjustments to these estimates. This approach underscores several stocks with potential for superior performance relative to the overall market within a period spanning from one to three months. At present, Genpact holds a Zacks ranking of #2 (Buy).
In the last three months, the Zacks Consensus Estimate for G's annual profits has risen by 4%. This indicates that analysts' attitudes have become more positive and the company’s financial forecast looks better than before.
The most recent statistics indicate that G has seen a return of around 5% from the beginning of the current calendar year. In contrast, the overall performance of the Computer and Technology sector has averaged at -22.4% so far this year. Consequently, Genpact is performing better than the broader industry segment for this period.
One more standout performer in the Computer and Technology sector this year is StoneCo Ltd. (STNE), with its shares increasing by 30.9% since the beginning of the year.
In the last three months, the consensus earnings per share (EPS) forecast for this year concerning StoneCo Ltd. has gone up by 5.3 percent. At present, the stock holds a Zacks rank of #1 (Strong Buy).
More precisely, Genpact operates within the Computers - IT Services sector, one of 40 companies in this category, ranking it at #92 in the Zacks Industry Rank. The overall sector has declined by an average of 22.9% year-to-date; thus, Genpact’s performance exceeds this benchmark.
On the other hand, StoneCo Ltd. belongs to the Internet - Software sector. This particular sector comprises 171 stocks and holds the 78th rank. Year-to-date, the sector has experienced a decline of 17.3%.
Investors focused on Computer and Technology stocks might want to keep an eye on Genpact and StoneCo Ltd., as these companies may sustain their strong performance.
The article was initially published on Zacks Investment Research (Massima).