Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. salesforce.com (CRM) 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? One simple way to answer this question is to take a look at the year-to-date performance of CRM and the rest of the Computer and Technology group's stocks.
salesforce.com is a member of our Computer and Technology group, which includes 645 different companies and currently sits at #4 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. CRM is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for CRM's full-year earnings has moved 1.25% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that CRM has returned about 18.85% since the start of the calendar year. Meanwhile, the Computer and Technology sector has returned an average of 11.46% on a year-to-date basis. This shows that salesforce.com is outperforming its peers so far this year.
Looking more specifically, CRM belongs to the Computer - Software industry, which includes 49 individual stocks and currently sits at #44 in the Zacks Industry Rank. Stocks in this group have gained about 10.10% so far this year, so CRM is performing better this group in terms of year-to-date returns.
Investors with an interest in Computer and Technology stocks should continue to track CRM. The stock will be looking to continue its solid performance.
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