Is Cisco Systems (CSCO) Outperforming Other Computer and Technology Stocks This Year?
Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Cisco Systems (CSCO) 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? Let's take a closer look at the stock's year-to-date performance to find out.
Cisco Systems is one of 613 companies in the Computer and Technology group. The Computer and Technology group currently sits at #2 within 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 is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Cisco Systems is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for CSCO's full-year earnings has moved 11.2% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that CSCO has returned about 42.1% since the start of the calendar year. In comparison, Computer and Technology companies have returned an average of 18%. This means that Cisco Systems is outperforming the sector as a whole this year.
Another stock in the Computer and Technology sector, Five9 (FIVN), has outperformed the sector so far this year. The stock's year-to-date return is 51.5%.
In Five9's case, the consensus EPS estimate for the current year increased 11.1% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Cisco Systems is a member of the Computer - Networking industry, which includes 7 individual companies and currently sits at #77 in the Zacks Industry Rank. On average, stocks in this group have gained 41.4% this year, meaning that CSCO is performing better in terms of year-to-date returns.
On the other hand, Five9 belongs to the Internet - Software industry. This 174-stock industry is currently ranked #84. The industry has moved +0.6% year to date.
Investors interested in the Computer and Technology sector may want to keep a close eye on Cisco Systems and Five9 as they attempt to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).
