For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Arista Networks (ANET) 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? One simple way to answer this question is to take a look at the year-to-date performance of ANET and the rest of the Computer and Technology group's stocks.
Arista Networks is one of 641 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #7 in 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. ANET is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for ANET's full-year earnings has moved 5.06% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, ANET has moved about 52.93% on a year-to-date basis. Meanwhile, the Computer and Technology sector has returned an average of 20.67% on a year-to-date basis. This means that Arista Networks is outperforming the sector as a whole this year.
To break things down more, ANET belongs to the Communication - Components industry, a group that includes 20 individual companies and currently sits at #37 in the Zacks Industry Rank. On average, this group has gained an average of 32.14% so far this year, meaning that ANET is performing better in terms of year-to-date returns.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to ANET as it looks to continue its solid performance.
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