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 Ericsson (ERIC - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.
Ericsson is a member of our Computer and Technology group, which includes 641 different companies and currently sits at #5 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 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. ERIC is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for ERIC's full-year earnings has moved 3.50% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, ERIC has returned 8.68% so far this year. In comparison, Computer and Technology companies have returned an average of 21.91%. This means that Ericsson is performing better than its sector in terms of year-to-date returns.
Looking more specifically, ERIC belongs to the Wireless Equipment industry, which includes 14 individual stocks and currently sits at #74 in the Zacks Industry Rank. On average, stocks in this group have gained 28.35% this year, meaning that ERIC is slightly underperforming its industry in terms of year-to-date returns.
ERIC will likely be looking to continue its solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to the company.