The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. CTS (CTS) 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.
CTS is one of 611 companies in the Computer and Technology group. The Computer and Technology group currently sits at #5 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. CTS is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for CTS' full-year earnings has moved 0.4% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, CTS has moved about 32.8% on a year-to-date basis. In comparison, Computer and Technology companies have returned an average of -2.1%. As we can see, CTS is performing better than its sector in the calendar year.
One other Computer and Technology stock that has outperformed the sector so far this year is KLA (KLAC). The stock is up 19.4% year-to-date.
The consensus estimate for KLA's current year EPS has increased 3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, CTS belongs to the Electronics - Miscellaneous Components industry, which includes 26 individual stocks and currently sits at #52 in the Zacks Industry Rank. This group has gained an average of 8% so far this year, so CTS is performing better in this area.
KLA, however, belongs to the Electronics - Miscellaneous Products industry. Currently, this 35-stock industry is ranked #57. The industry has moved +17.8% so far this year.
Investors interested in the Computer and Technology sector may want to keep a close eye on CTS and KLA as they attempt to continue their solid performance.
Free Report: Profiting from the 2nd Wave of AI Explosion
The next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.
Investors who bought shares like Nvidia at the right time have had a shot at huge gains.
But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.
Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.
Access AI Boom 2.0 now, absolutely free >>CTS Corporation (CTS) : Free Stock Analysis Report
KLA Corporation (KLAC) : Free Stock Analysis Report
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.
