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. SAIC (SAIC) 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? 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.
SAIC is one of 655 companies in the Computer and Technology group. The Computer and Technology group currently sits at #4 within 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 is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. SAIC is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for SAIC's full-year earnings has moved 0.6% 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, SAIC has returned 30.9% so far this year. In comparison, Computer and Technology companies have returned an average of -37.3%. This means that SAIC is performing better than its sector in terms of year-to-date returns.
Another stock in the Computer and Technology sector, Sierra Wireless (SWIR), has outperformed the sector so far this year. The stock's year-to-date return is 64%.
The consensus estimate for Sierra Wireless' current year EPS has increased 9.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, SAIC belongs to the Computers - IT Services industry, a group that includes 40 individual stocks and currently sits at #89 in the Zacks Industry Rank. This group has lost an average of 34.9% so far this year, so SAIC is performing better in this area.
Sierra Wireless, however, belongs to the Wireless Equipment industry. Currently, this 16-stock industry is ranked #72. The industry has moved -32.5% so far this year.
Investors interested in the Computer and Technology sector may want to keep a close eye on SAIC and Sierra Wireless as they attempt to continue their solid performance.
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