Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Ciena (CIEN) 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? 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.
Ciena is a member of the Computer and Technology sector. This group includes 613 individual stocks and currently holds a Zacks Sector Rank of #2. 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 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. Ciena is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for CIEN's full-year earnings has moved 5.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that CIEN has returned about 62% since the start of the calendar year. Meanwhile, the Computer and Technology sector has returned an average of 12.1% on a year-to-date basis. This shows that Ciena is outperforming its peers so far this year.
Arista Networks (ANET) 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 29.3%.
Over the past three months, Arista Networks' consensus EPS estimate for the current year has increased 4.1%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Ciena belongs to the Communication - Components industry, a group that includes 13 individual stocks and currently sits at #39 in the Zacks Industry Rank. On average, stocks in this group have gained 77.4% this year, meaning that CIEN is slightly underperforming its industry in terms of year-to-date returns.
Arista Networks, however, belongs to the Internet - Software industry. Currently, this 175-stock industry is ranked #85. The industry has moved -6.2% so far this year.
Investors with an interest in Computer and Technology stocks should continue to track Ciena and Arista Networks. These stocks will be looking to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).