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Are Computer and Technology Stocks Lagging Harmonic (HLIT) 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 one of 656 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. Harmonic is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for HLIT's full-year earnings has moved 13.4% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, HLIT has returned 21.6% so far this year. In comparison, Computer and Technology companies have returned an average of -37%. This shows that Harmonic is outperforming its peers so far this year.

Another Computer and Technology stock, which has outperformed the sector so far this year, is Rambus (RMBS - Free Report) . The stock has returned 13.7% year-to-date.

For Rambus, the consensus EPS estimate for the current year has increased 7.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Harmonic is a member of the Communication - Components industry, which includes 15 individual companies and currently sits at #68 in the Zacks Industry Rank. Stocks in this group have lost about 18.4% so far this year, so HLIT is performing better this group in terms of year-to-date returns.

In contrast, Rambus falls under the Electronics - Semiconductors industry. Currently, this industry has 40 stocks and is ranked #167. Since the beginning of the year, the industry has moved -39.3%.

Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Harmonic and Rambus as they could maintain their solid performance.


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