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Is Cisco Systems (CSCO) Outperforming Other Computer and Technology Stocks This Year?

Zacks Equity Research
Valmont (VMI) delivered earnings and revenue surprises of -6.25% and -3.46%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?

Investors focused on the Computer and Technology space have likely heard of Cisco Systems (CSCO), but is the stock performing well in comparison to the rest of its sector peers? 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.

Cisco Systems is one of 637 companies in the Computer and Technology group. The Computer and Technology group currently sits at #8 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. CSCO is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for CSCO's full-year earnings has moved 1.86% 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 29.63% since the start of the calendar year. At the same time, Computer and Technology stocks have gained an average of 16.86%. This means that Cisco Systems is performing better than its sector in terms of year-to-date returns.

To break things down more, CSCO belongs to the Computer - Networking industry, a group that includes 8 individual companies and currently sits at #216 in the Zacks Industry Rank. Stocks in this group have gained about 30.26% so far this year, so CSCO is slightly underperforming its industry this group in terms of year-to-date returns.

Investors in the Computer and Technology sector will want to keep a close eye on CSCO as it attempts to continue its solid performance.


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