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. Has Celestica (CLS) been one of those stocks this year? 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.
Celestica is one of 612 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #3 in the Zacks Sector Rank. 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 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. Celestica is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for CLS' full-year earnings has moved 8.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, CLS has returned 8% so far this year. At the same time, Computer and Technology stocks have gained an average of 0.7%. This shows that Celestica is outperforming its peers so far this year.
Arrow Electronics (ARW) 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 43.5%.
Over the past three months, Arrow Electronics' consensus EPS estimate for the current year has increased 5.9%. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Celestica is a member of the Electronics - Manufacturing Services industry, which includes 4 individual companies and currently sits at #4 in the Zacks Industry Rank. On average, stocks in this group have gained 12.5% this year, meaning that CLS is slightly underperforming its industry in terms of year-to-date returns.
On the other hand, Arrow Electronics belongs to the Electronics - Parts Distribution industry. This 4-stock industry is currently ranked #18. The industry has moved +31.2% year to date.
Investors interested in the Computer and Technology sector may want to keep a close eye on Celestica and Arrow Electronics as they attempt to continue their solid performance.
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Celestica, Inc. (CLS): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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