The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Arista Networks (ANET - 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.
Arista Networks is a member of our Computer and Technology group, which includes 659 different companies and currently sits at #4 in 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. ANET is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for ANET's full-year earnings has moved 6.36% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, ANET has returned 3.53% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 3.28% on a year-to-date basis. This shows that Arista Networks is outperforming its peers so far this year.
Looking more specifically, ANET belongs to the Communication - Components industry, a group that includes 24 individual stocks and currently sits at #68 in the Zacks Industry Rank. On average, stocks in this group have gained 5.45% this year, meaning that ANET is slightly underperforming its industry in terms of year-to-date returns.
Investors in the Computer and Technology sector will want to keep a close eye on ANET as it attempts to continue its solid performance.