Back to top

Image: Bigstock

Is Arista Networks (ANET) Outperforming Other Computer and Technology Stocks This Year?

Read MoreHide Full Article

The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Arista Networks (ANET - 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? 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.

Arista Networks is a member of our Computer and Technology group, which includes 617 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 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. Arista Networks is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for ANET's full-year earnings has moved 5.4% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that ANET has returned about 41.2% since the start of the calendar year. At the same time, Computer and Technology stocks have gained an average of 21.4%. As we can see, Arista Networks is performing better than its sector in the calendar year.

ASML (ASML - Free Report) is another Computer and Technology stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 22.1%.

The consensus estimate for ASML's current year EPS has increased 1.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Arista Networks belongs to the Communication - Components industry, which includes 11 individual stocks and currently sits at #27 in the Zacks Industry Rank. Stocks in this group have gained about 38.8% so far this year, so ANET is performing better this group in terms of year-to-date returns.

ASML, however, belongs to the Semiconductor Equipment - Wafer Fabrication industry. Currently, this 4-stock industry is ranked #97. The industry has moved +25.5% so far this year.

Arista Networks and ASML could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


ASML Holding N.V. (ASML) - free report >>

Arista Networks, Inc. (ANET) - free report >>

Published in