The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Allot Communications (ALLT) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Allot Communications is a member of our Computer and Technology group, which includes 604 different companies and currently sits at #2 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 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. Allot Communications is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, 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.
Our latest available data shows that ALLT has returned about 62.2% since the start of the calendar year. At the same time, Computer and Technology stocks have gained an average of 25.7%. This shows that Allot Communications is outperforming its peers so far this year.
Another stock in the Computer and Technology sector, Nokia (NOK), has outperformed the sector so far this year. The stock's year-to-date return is 36.8%.
In Nokia's case, the consensus EPS estimate for the current year increased 3.7% over the past three months. 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 #71 in the Zacks Industry Rank. Stocks in this group have gained about 5.2% so far this year, so ALLT is performing better this group in terms of year-to-date returns.
In contrast, Nokia falls under the Wireless Equipment industry. Currently, this industry has 11 stocks and is ranked #33. Since the beginning of the year, the industry has moved +19%.
Investors with an interest in Computer and Technology stocks should continue to track Allot Communications and Nokia. These stocks will be looking to continue their solid performance.
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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.
