Are Computer and Technology Stocks Lagging Salesforce (CRM) This Year?
The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Salesforce.com (CRM) been one of those stocks this year? 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.
Salesforce.com is one of 631 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #9 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 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. Salesforce.com is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for CRM's full-year earnings has moved 7.9% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, CRM has gained about 56.1% so far this year. In comparison, Computer and Technology companies have returned an average of 34.3%. This means that Salesforce.com is outperforming the sector as a whole this year.
Another stock in the Computer and Technology sector, Extreme Networks (EXTR), has outperformed the sector so far this year. The stock's year-to-date return is 59.3%.
Over the past three months, Extreme Networks' consensus EPS estimate for the current year has increased 6%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Salesforce.com belongs to the Computer - Software industry, which includes 39 individual stocks and currently sits at #84 in the Zacks Industry Rank. This group has gained an average of 35.7% so far this year, so CRM is performing better in this area.
In contrast, Extreme Networks falls under the Computer - Networking industry. Currently, this industry has 9 stocks and is ranked #30. Since the beginning of the year, the industry has moved +12.7%.
Salesforce.com and Extreme Networks could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Salesforce Inc. (CRM) : Free Stock Analysis Report
Extreme Networks, Inc. (EXTR) : Free Stock Analysis Report
