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Is NVIDIA (NVDA) Stock Outpacing Its Computer and Technology Peers This Year?

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The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Nvidia (NVDA - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Nvidia is one of 633 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #9 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. Nvidia is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for NVDA's full-year earnings has moved 45.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that NVDA has returned about 184.7% since the start of the calendar year. At the same time, Computer and Technology stocks have gained an average of 33.2%. As we can see, Nvidia is performing better than its sector in the calendar year.

Palo Alto Networks (PANW - Free Report) is another Computer and Technology stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 63.8%.

In Palo Alto Networks' case, the consensus EPS estimate for the current year increased 37.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Nvidia belongs to the Semiconductor - General industry, a group that includes 8 individual stocks and currently sits at #84 in the Zacks Industry Rank. This group has gained an average of 106.8% so far this year, so NVDA is performing better in this area.

In contrast, Palo Alto Networks falls under the Internet - Software industry. Currently, this industry has 148 stocks and is ranked #84. Since the beginning of the year, the industry has moved +44.1%.

Investors with an interest in Computer and Technology stocks should continue to track Nvidia and Palo Alto Networks. These stocks will be looking to continue their solid performance.


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