The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Celestica (CLS) 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? 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 617 companies in the Computer and Technology group. The Computer and Technology group currently sits at #7 within 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. Celestica is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for CLS' full-year earnings has moved 11.2% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, CLS has gained about 97.7% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 24.9% on a year-to-date basis. This means that Celestica is outperforming the sector as a whole this year.
Another stock in the Computer and Technology sector, Dell Technologies (DELL), has outperformed the sector so far this year. The stock's year-to-date return is 64.5%.
In Dell Technologies' case, the consensus EPS estimate for the current year 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 4 individual companies and currently sits at #199 in the Zacks Industry Rank. This group has gained an average of 12% so far this year, so CLS is performing better in this area.
On the other hand, Dell Technologies belongs to the Computers - IT Services industry. This 39-stock industry is currently ranked #104. The industry has moved +4.8% year to date.
Celestica and Dell Technologies 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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