May 28, 2024


Super Technology

Is Donnelley Financial Solutions (DFIN) Stock Outpacing Its Computer and Technology Peers This Year? – December 29, 2021

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. Donnelley Financial Solutions (DFIN Free Report) 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? 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.

Donnelley Financial Solutions is one of 646 companies in the Computer and Technology group. The Computer and Technology group currently sits at #9 within 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Donnelley Financial Solutions is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for DFIN’s full-year earnings has moved 29.7% higher. This shows that analyst sentiment has improved and the company’s earnings outlook is stronger.

Based on the most recent data, DFIN has returned 176.1% so far this year. In comparison, Computer and Technology companies have returned an average of 27.3%. This means that Donnelley Financial Solutions is performing better than its sector in terms of year-to-date returns.

Entegris (ENTG 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 45.2%.

The consensus estimate for Entegris’ current year EPS has increased 1.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Donnelley Financial Solutions belongs to the Internet – Software and Services industry, which includes 13 individual stocks and currently sits at #79 in the Zacks Industry Rank. On average, stocks in this group have lost 8.4% this year, meaning that DFIN is performing better in terms of year-to-date returns.

On the other hand, Entegris belongs to the Electronics – Manufacturing Machinery industry. This 11-stock industry is currently ranked #40. The industry has moved +38.6% year to date.

Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Donnelley Financial Solutions and Entegris as they could maintain their solid performance.