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Is Ciena (CIEN) Stock Outpacing Its Computer and Technology Peers This Year?

Zacks Equity Research
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Investors focused on the Computer and Technology space have likely heard of Ciena (CIEN), but is the stock performing well in comparison to the rest of its sector peers? One simple way to answer this question is to take a look at the year-to-date performance of CIEN and the rest of the Computer and Technology group's stocks.

Ciena is one of 641 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 groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

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. CIEN is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for CIEN's full-year earnings has moved 5.43% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, CIEN has gained about 6.64% so far this year. At the same time, Computer and Technology stocks have gained an average of 20.17%. This means that Ciena is outperforming the sector as a whole this year.

Looking more specifically, CIEN belongs to the Fiber Optics industry, which includes 2 individual stocks and currently sits at #103 in the Zacks Industry Rank. Stocks in this group have gained about 8.97% so far this year, so CIEN is slightly underperforming its industry this group in terms of year-to-date returns.

Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to CIEN as it looks to continue its solid performance.


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