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Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Nuance Communications (NUAN) 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? One simple way to answer this question is to take a look at the year-to-date performance of NUAN and the rest of the Computer and Technology group's stocks.
Nuance Communications is one of 630 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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. NUAN is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for NUAN's full-year earnings has moved 5.37% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, NUAN has returned 7.46% so far this year. In comparison, Computer and Technology companies have returned an average of -10.56%. This means that Nuance Communications is performing better than its sector in terms of year-to-date returns.
Breaking things down more, NUAN is a member of the Computer - Software industry, which includes 43 individual companies and currently sits at #61 in the Zacks Industry Rank. On average, this group has lost an average of 6.54% so far this year, meaning that NUAN is performing better in terms of year-to-date returns.
Investors in the Computer and Technology sector will want to keep a close eye on NUAN as it attempts to continue its solid performance.
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