Are Computer and Technology Stocks Lagging Arista Networks (ANET) This Year?

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. Arista Networks (ANET) 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? Let's take a closer look at the stock's year-to-date performance to find out.

Arista Networks is a member of our Computer and Technology group, which includes 604 different companies and currently sits at #5 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

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. Arista Networks is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for ANET's full-year earnings has moved 11.1% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, ANET has moved about 32.7% on a year-to-date basis. At the same time, Computer and Technology stocks have gained an average of 21.4%. This means that Arista Networks is performing better than its sector in terms of year-to-date returns.

One other Computer and Technology stock that has outperformed the sector so far this year is Consensus Cloud Solutions, Inc. (CCSI). The stock is up 23% year-to-date.

Over the past three months, Consensus Cloud Solutions, Inc.'s consensus EPS estimate for the current year has increased 3.7%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Arista Networks belongs to the Internet - Software industry, which includes 172 individual stocks and currently sits at #64 in the Zacks Industry Rank. On average, this group has gained an average of 26% so far this year, meaning that ANET is performing better in terms of year-to-date returns. Consensus Cloud Solutions, Inc. is also part of the same industry.

Investors interested in the Computer and Technology sector may want to keep a close eye on Arista Networks and Consensus Cloud Solutions, Inc. as they attempt to continue their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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