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 a member of the Computer and Technology sector. This group includes 668 individual stocks and currently holds a Zacks Sector Rank of #6. 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 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. 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 2% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, CLS has returned 15.5% so far this year. At the same time, Computer and Technology stocks have lost an average of 7.6%. This means that Celestica is outperforming the sector as a whole this year.
One other Computer and Technology stock that has outperformed the sector so far this year is Fair Isaac (FICO). The stock is up 14.7% year-to-date.
Over the past three months, Fair Isaac’s consensus EPS estimate for the current year has increased 6.3%. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Celestica belongs to the Electronics – Manufacturing Services industry, a group that includes 5 individual companies and currently sits at #58 in the Zacks Industry Rank. This group has lost an average of 9.3% so far this year, so CLS is performing better in this area.
On the other hand, Fair Isaac belongs to the Computers – IT Services industry. This 38-stock industry is currently ranked #152. The industry has moved -9.6% year to date.
Celestica and Fair Isaac 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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