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 Blend Labs (BLND) 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.
Blend Labs is one of 668 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #5 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. Blend Labs is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for BLND’s full-year earnings has moved 3.3% higher. This signals that analyst sentiment is improving and the stock’s earnings outlook is more positive.
Based on the latest available data, BLND has gained about 22.6% so far this year. Meanwhile, the Computer and Technology sector has returned an average of -9.2% on a year-to-date basis. This means that Blend Labs is outperforming the sector as a whole this year.
Another stock in the Computer and Technology sector, Cognizant (CTSH), has outperformed the sector so far this year. The stock’s year-to-date return is 0.5%.
For Cognizant, the consensus EPS estimate for the current year has increased 1.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Blend Labs belongs to the Internet – Software industry, a group that includes 150 individual companies and currently sits at #159 in the Zacks Industry Rank. This group has lost an average of 25.2% so far this year, so BLND is performing better in this area.
On the other hand, Cognizant belongs to the Business – Software Services industry. This 9-stock industry is currently ranked #31. The industry has moved -11.7% year to date.
Blend Labs and Cognizant could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.
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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.