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Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Has Guidewire Software (GWRE) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.

Guidewire Software is one of 619 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #3 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 is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Guidewire Software is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for GWRE's full-year earnings has moved 38.6% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, GWRE has gained about 78.8% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 31.4% on average. This shows that Guidewire Software is outperforming its peers so far this year.

Another Computer and Technology stock, which has outperformed the sector so far this year, is Amphenol (APH). The stock has returned 49% year-to-date.

Over the past three months, Amphenol's consensus EPS estimate for the current year has increased 5%. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Guidewire Software belongs to the Business - Software Services industry, which includes 8 individual stocks and currently sits at #16 in the Zacks Industry Rank. This group has gained an average of 21.9% so far this year, so GWRE is performing better in this area.

In contrast, Amphenol falls under the Electronics - Connectors industry. Currently, this industry has 2 stocks and is ranked #3. Since the beginning of the year, the industry has moved +47.8%.

Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Guidewire Software and Amphenol as they could maintain their solid performance.

Zacks Investment Research

The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Amphenol (APH) one of those stocks right now? 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.

Amphenol is a member of the Computer and Technology sector. This group includes 620 individual stocks and currently holds a Zacks Sector Rank of #4. 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 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. Amphenol is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for APH's full-year earnings has moved 5.4% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, APH has gained about 40.8% so far this year. At the same time, Computer and Technology stocks have gained an average of 26.4%. As we can see, Amphenol is performing better than its sector in the calendar year.

Guidewire Software (GWRE) 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 72.5%.

In Guidewire Software's case, the consensus EPS estimate for the current year increased 38.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Amphenol belongs to the Electronics - Connectors industry, which includes 2 individual stocks and currently sits at #101 in the Zacks Industry Rank. On average, stocks in this group have gained 39.6% this year, meaning that APH is performing better in terms of year-to-date returns.

In contrast, Guidewire Software falls under the Business - Software Services industry. Currently, this industry has 8 stocks and is ranked #46. Since the beginning of the year, the industry has moved +17.2%.

Amphenol and Guidewire Software could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.

Zacks Investment Research

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Guidewire Software (GWRE), a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Guidewire Software currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here

Set to Beat the Market?

Let's discuss some of the components of the Momentum Style Score for GWRE that show why this provider of software to the insurance industry shows promise as a solid momentum pick.

Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.

For GWRE, shares are up 1.76% over the past week while the Zacks Business - Software Services industry is up 1.08% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 5.73% compares favorably with the industry's 1.73% performance as well.

Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Over the past quarter, shares of Guidewire Software have risen 24.53%, and are up 116.73% in the last year. In comparison, the S&P 500 has only moved 4.71% and 39.26%, respectively.

Investors should also pay attention to GWRE's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. GWRE is currently averaging 917,769 shares for the last 20 days.

Earnings Outlook

The Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with GWRE.

Over the past two months, 4 earnings estimates moved higher compared to 3 lower for the full year. These revisions helped boost GWRE's consensus estimate, increasing from $1.91 to $1.98 in the past 60 days. Looking at the next fiscal year, 4 estimates have moved upwards while there have been 2 downward revisions in the same time period.

Bottom Line

Given these factors, it shouldn't be surprising that GWRE is a #2 (Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Guidewire Software on your short list.

Zacks Investment Research