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. Autohome (ATHM) 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.
Autohome is one of 634 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #6 in 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. ATHM is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for ATHM's full-year earnings has moved 4.78% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, ATHM has moved about 8.79% on a year-to-date basis. At the same time, Computer and Technology stocks have gained an average of 18.08%. This means that Autohome is outperforming the sector as a whole this year.
To break things down more, ATHM belongs to the Internet - Services industry, a group that includes 50 individual companies and currently sits at #61 in the Zacks Industry Rank. On average, this group has gained an average of 10.05% so far this year, meaning that ATHM is slightly underperforming its industry in terms of year-to-date returns.
ATHM will likely be looking to continue its solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to the company.
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