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. Salesforce.com (CRM) 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.
Salesforce.com is one of 633 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 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 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. 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 0.8% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, CRM has gained about 67.1% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 41.6% on average. This means that Salesforce.com is performing better than its sector in terms of year-to-date returns.
Another Computer and Technology stock, which has outperformed the sector so far this year, is Extreme Networks (EXTR). The stock has returned 48.2% year-to-date.
Over the past three months, Extreme Networks' consensus EPS estimate for the current year has increased 6%. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Salesforce.com is a member of the Computer - Software industry, which includes 39 individual companies and currently sits at #90 in the Zacks Industry Rank. Stocks in this group have gained about 41.1% so far this year, so CRM is performing better this group in terms of year-to-date returns.
In contrast, Extreme Networks falls under the Computer - Networking industry. Currently, this industry has 9 stocks and is ranked #31. Since the beginning of the year, the industry has moved +22.5%.
Investors with an interest in Computer and Technology stocks should continue to track Salesforce.com and Extreme Networks. These stocks will be looking to continue their solid performance.
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