The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Celestica (CLS) 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.
Celestica is one of 618 companies in the Computer and Technology group. The Computer and Technology group currently sits at #12 within 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 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. Celestica is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for CLS' full-year earnings has moved 10.6% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that CLS has returned about 101.8% since the start of the calendar year. At the same time, Computer and Technology stocks have gained an average of 26.1%. As we can see, Celestica is performing better than its sector in the calendar year.
Dell Technologies (DELL) 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 95%.
The consensus estimate for Dell Technologies' current year EPS has increased 4.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Celestica is a member of the Electronics - Manufacturing Services industry, which includes 5 individual companies and currently sits at #97 in the Zacks Industry Rank. On average, this group has gained an average of 15.9% so far this year, meaning that CLS is performing better in terms of year-to-date returns.
Dell Technologies, however, belongs to the Computers - IT Services industry. Currently, this 38-stock industry is ranked #155. The industry has moved +7.3% so far this year.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Celestica and Dell Technologies as they could maintain their solid performance.
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