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. salesforce.com (CRM - Free Report) 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? One simple way to answer this question is to take a look at the year-to-date performance of CRM and the rest of the Computer and Technology group's stocks.
salesforce.com is one of 659 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 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. CRM is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for CRM's full-year earnings has moved 8.23% higher within the past quarter. 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 36.67% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 0.95% on average. This means that salesforce.com is performing better than its sector in terms of year-to-date returns.
Breaking things down more, CRM is a member of the Computer - Software industry, which includes 50 individual companies and currently sits at #98 in the Zacks Industry Rank. On average, stocks in this group have gained 22.59% this year, meaning that CRM is performing better in terms of year-to-date returns.
Investors with an interest in Computer and Technology stocks should continue to track CRM. The stock will be looking to continue its solid performance.