Technology stocks

Is Baidu (BIDU) outperforming other IT and technology stocks this year?

For those looking to find strong IT and technology stocks, it is prudent to look for group companies that outperform their peers. Is Baidu Inc. (BIDU) one of those stocks right now? Let’s take a closer look at the stock’s year-to-date performance to find out.

Baidu Inc. is one of 662 companies in the IT and Technology group. The IT and technology group is currently ranked 8th in the Zacks industry rankings. The Zacks Sector Ranking assesses the strength of our 16 individual sector groups by measuring the average Zacks Ranking of individual stocks within the groups.

The Zacks ranking emphasizes earnings estimates and estimate revisions to find stocks with improved earnings prospects. This system has a long history of success, and these stocks tend to beat the market over the next one to three months. Baidu Inc. currently sports a Zacks rank of #2 (buy).

The Zacks consensus estimate for BIDU’s annual earnings rose 5.1% in the last quarter. That means analyst sentiment is stronger and the stock’s earnings outlook is improving.

According to the most recent data, the BIDU has returned 1.7% so far this year. By comparison, IT and technology companies posted an average return of -26.8%. This means that Baidu Inc. outperforms the industry as a whole this year.

Amdocs (DOX) is another IT and technology stock that has outperformed the sector so far this year. Since the start of the year, the stock has risen 13.4%.

Amdocs’ current-year EPS consensus estimate rose 1.3% over the past three months. The stock currently has a Zacks #2 (buy) rank.

To break it down further, Baidu Inc. belongs to the Internet – Services industry, a group that comprises 48 individual companies and is currently ranked 210th in the Zacks industry rankings. This group has lost an average of 20.5% so far this year, so BIDU is performing better in this area.

On the other hand, Amdocs belongs to the Computers – Computer Services industry. This 40-stock industry is currently ranked #108. The industry has evolved by -27% since the beginning of the year.

Investors interested in the IT and technology sector may want to keep a close eye on Baidu Inc. and Amdocs as they attempt to continue their strong performance.

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