May 19, 2024


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Is Mercury Systems (MRCY) Outperforming Other Computer and Technology Stocks This Year?

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 Mercury Systems (MRCY) been one of those stocks this year? By taking a look at the stock’s year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.

Mercury Systems is one of 665 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #9 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. Mercury Systems is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for MRCY’s full-year earnings has moved 3.4% higher. This means that analyst sentiment is stronger and the stock’s earnings outlook is improving.

Our latest available data shows that MRCY has returned about 3.1% since the start of the calendar year. At the same time, Computer and Technology stocks have lost an average of 5.3%. As we can see, Mercury Systems is performing better than its sector in the calendar year.

Another stock in the Computer and Technology sector, Mimecast (MIME), has outperformed the sector so far this year. The stock’s year-to-date return is 1.1%.

Over the past three months, Mimecast’s consensus EPS estimate for the current year has increased 18.5%. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Mercury Systems is a member of the Computer – Peripheral Equipment industry, which includes 9 individual companies and currently sits at #106 in the Zacks Industry Rank. On average, this group has lost an average of 0.4% so far this year, meaning that MRCY is performing better in terms of year-to-date returns.

Mimecast, however, belongs to the Internet – Software industry. Currently, this 148-stock industry is ranked #176. The industry has moved -10.3% so far this year.

Investors with an interest in Computer and Technology stocks should continue to track Mercury Systems and Mimecast. These stocks will be looking to continue their solid performance.

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