The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Acacia Communications (ACIA - 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.
Acacia Communications is one of 625 companies in the Computer and Technology group. The Computer and Technology group currently sits at #2 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 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. ACIA is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for ACIA's full-year earnings has moved 64.86% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, ACIA has returned 7.65% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 12.81% on a year-to-date basis. This means that Acacia Communications is outperforming the sector as a whole this year.
Breaking things down more, ACIA is a member of the Communication - Components industry, which includes 24 individual companies and currently sits at #100 in the Zacks Industry Rank. This group has gained an average of 12.13% so far this year, so ACIA is slightly underperforming its industry in this area.
Investors in the Computer and Technology sector will want to keep a close eye on ACIA as it attempts to continue its solid performance.