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? 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.
Ericsson is a member of our Computer and Technology group, which includes 638 different companies and currently sits at #7 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. ERIC is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for ERIC's full-year earnings has moved 23.89% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, ERIC has returned 5.64% so far this year. At the same time, Computer and Technology stocks have gained an average of 18.10%. This shows that Ericsson is outperforming its peers so far this year.
Looking more specifically, ERIC belongs to the Wireless Equipment industry, which includes 14 individual stocks and currently sits at #14 in the Zacks Industry Rank. On average, stocks in this group have gained 22.36% this year, meaning that ERIC 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 ERIC as it attempts to continue its solid performance.