The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Bandwidth (BAND) 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.
Bandwidth is one of 619 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #4 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 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. Bandwidth is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for BAND's full-year earnings has moved 18.1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, BAND has gained about 241.3% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 22.6% on average. This means that Bandwidth is performing better than its sector in terms of year-to-date returns.
Another Computer and Technology stock, which has outperformed the sector so far this year, is Cisco Systems (CSCO). The stock has returned 49.4% year-to-date.
For Cisco Systems, the consensus EPS estimate for the current year has increased 10.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Bandwidth belongs to the Communication - Infrastructure industry, which includes 3 individual stocks and currently sits at #40 in the Zacks Industry Rank. On average, this group has gained an average of 57.7% so far this year, meaning that BAND is performing better in terms of year-to-date returns.
In contrast, Cisco Systems falls under the Computer - Networking industry. Currently, this industry has 7 stocks and is ranked #97. Since the beginning of the year, the industry has moved +48.6%.
Investors with an interest in Computer and Technology stocks should continue to track Bandwidth and Cisco Systems. These stocks will be looking to continue their solid performance.
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Bandwidth Inc. (BAND): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).