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. Ciena (CIEN - 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 CIEN and the rest of the Computer and Technology group's stocks.
Ciena is one of 641 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #7 in 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. CIEN is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for CIEN's full-year earnings has moved 6.44% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, CIEN has moved about 9.35% on a year-to-date basis. Meanwhile, the Computer and Technology sector has returned an average of 20.67% on a year-to-date basis. This means that Ciena is outperforming the sector as a whole this year.
To break things down more, CIEN belongs to the Fiber Optics industry, a group that includes 2 individual companies and currently sits at #11 in the Zacks Industry Rank. On average, this group has gained an average of 11.25% so far this year, meaning that CIEN is slightly underperforming its industry in terms of year-to-date returns.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to CIEN as it looks to continue its solid performance.