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Is Harmonic (HLIT) Stock Outpacing Its Computer and Technology Peers This Year?

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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. Is Harmonic (HLIT - Free Report) one of those stocks right now? 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.

Harmonic is a member of the Computer and Technology sector. This group includes 660 individual stocks and currently holds a Zacks Sector Rank of #6. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

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. Harmonic is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for HLIT's full-year earnings has moved 46.4% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that HLIT has returned about 18% since the start of the calendar year. At the same time, Computer and Technology stocks have lost an average of 35.8%. This shows that Harmonic is outperforming its peers so far this year.

One other Computer and Technology stock that has outperformed the sector so far this year is Iridium Communications (IRDM - Free Report) . The stock is up 15.5% year-to-date.

In Iridium Communications' case, the consensus EPS estimate for the current year increased 33.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Harmonic belongs to the Communication - Components industry, a group that includes 15 individual stocks and currently sits at #70 in the Zacks Industry Rank. This group has lost an average of 27.3% so far this year, so HLIT is performing better in this area.

In contrast, Iridium Communications falls under the Satellite and Communication industry. Currently, this industry has 8 stocks and is ranked #15. Since the beginning of the year, the industry has moved -22.3%.

Investors interested in the Computer and Technology sector may want to keep a close eye on Harmonic and Iridium Communications as they attempt to continue their solid performance.


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