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. Cisco Systems (CSCO) 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? 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.
Cisco Systems is a member of our Computer and Technology group, which includes 605 different companies and currently sits at #6 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. 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 0.7% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that CSCO has returned about 15.7% since the start of the calendar year. Meanwhile, stocks in the Computer and Technology group have gained about 11.8% on average. As we can see, Cisco Systems is performing better than its sector in the calendar year.
Another Computer and Technology stock, which has outperformed the sector so far this year, is F5 Networks (FFIV). The stock has returned 27.7% year-to-date.
In F5 Networks' case, the consensus EPS estimate for the current year increased 5.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Cisco Systems belongs to the Computer - Networking industry, a group that includes 8 individual stocks and currently sits at #100 in the Zacks Industry Rank. On average, stocks in this group have gained 15.2% this year, meaning that CSCO is performing better in terms of year-to-date returns.
In contrast, F5 Networks falls under the Internet - Software industry. Currently, this industry has 173 stocks and is ranked #78. Since the beginning of the year, the industry has moved +22.2%.
Investors with an interest in Computer and Technology stocks should continue to track Cisco Systems and F5 Networks. These stocks will be looking to continue their solid performance.
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Cisco Systems, Inc. (CSCO): Free Stock Analysis Report F5, Inc. (FFIV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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