Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. 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 640 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 gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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 #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for CIEN's full-year earnings has moved 12.25% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, CIEN has returned 27.22% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 21.71% 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 #19 in the Zacks Industry Rank. On average, this group has gained an average of 21.84% so far this year, meaning that CIEN is performing better in terms of year-to-date returns.
Investors in the Computer and Technology sector will want to keep a close eye on CIEN as it attempts to continue its solid performance.