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. Is Celestica (CLS) 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.
Celestica is a member of our Computer and Technology group, which includes 596 different companies and currently sits at #2 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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. Celestica is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for CLS' full-year earnings has moved 13.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, CLS has moved about 41.3% on a year-to-date basis. Meanwhile, stocks in the Computer and Technology group have gained about 11.9% on average. This means that Celestica is performing better than its sector in terms of year-to-date returns.
Another stock in the Computer and Technology sector, A10 Networks (ATEN), has outperformed the sector so far this year. The stock's year-to-date return is 53.4%.
For A10 Networks, the consensus EPS estimate for the current year has increased 12.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Celestica is a member of the Electronics - Manufacturing Services industry, which includes 4 individual companies and currently sits at #25 in the Zacks Industry Rank. On average, stocks in this group have gained 47.6% this year, meaning that CLS is slightly underperforming its industry in terms of year-to-date returns.
In contrast, A10 Networks falls under the Internet - Software industry. Currently, this industry has 171 stocks and is ranked #85. Since the beginning of the year, the industry has moved -12.7%.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Celestica and A10 Networks as they could maintain their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).