The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Cisco Systems (CSCO) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Cisco Systems is one of 592 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #2 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Cisco Systems is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for CSCO's full-year earnings has moved 3.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that CSCO has returned about 55.2% since the start of the calendar year. At the same time, Computer and Technology stocks have gained an average of 18.2%. This means that Cisco Systems is performing better than its sector in terms of year-to-date returns.
Another stock in the Computer and Technology sector, Arteris, Inc. (AIP), has outperformed the sector so far this year. The stock's year-to-date return is 168.1%.
Over the past three months, Arteris, Inc.'s consensus EPS estimate for the current year has increased 20.6%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Cisco Systems is a member of the Computer - Networking industry, which includes 7 individual companies and currently sits at #42 in the Zacks Industry Rank. Stocks in this group have gained about 55.1% so far this year, so CSCO is performing better this group in terms of year-to-date returns.
In contrast, Arteris, Inc. falls under the Internet - Software industry. Currently, this industry has 170 stocks and is ranked #86. Since the beginning of the year, the industry has moved -11.6%.
Cisco Systems and Arteris, Inc. could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.
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This article originally published on Zacks Investment Research (zacks.com).