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. Is Allot Communications (ALLT) one of those stocks right now? 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.
Allot Communications is a member of our Computer and Technology group, which includes 601 different companies and currently sits at #1 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 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. Allot Communications is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for ALLT's full-year earnings has moved 140% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, ALLT has gained about 55.8% so far this year. In comparison, Computer and Technology companies have returned an average of 27.9%. This means that Allot Communications is performing better than its sector in terms of year-to-date returns.
CyberArk (CYBR) 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 36.5%.
Over the past three months, CyberArk's consensus EPS estimate for the current year has increased 756.4%. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Allot Communications belongs to the Internet - Software industry, a group that includes 168 individual companies and currently sits at #55 in the Zacks Industry Rank. This group has gained an average of 9.8% so far this year, so ALLT is performing better in this area.
On the other hand, CyberArk belongs to the Security industry. This 10-stock industry is currently ranked #44. The industry has moved +11% year to date.
Allot Communications and CyberArk could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
