Has Cisco Systems (CSCO) Outpaced Other Computer and Technology Stocks This Year?

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. Has Cisco Systems (CSCO) been one of those stocks this year? 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.

Cisco Systems is a member of the Computer and Technology sector. This group includes 614 individual stocks and currently holds a Zacks Sector Rank of #3. 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 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. Cisco Systems is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for CSCO's full-year earnings has moved 14.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, CSCO has gained about 43.1% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 14.4% on average. As we can see, Cisco Systems is performing better than its sector in the calendar year.

Five9 (FIVN) 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 63.4%.

In Five9's case, the consensus EPS estimate for the current year increased 11.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Cisco Systems belongs to the Computer - Networking industry, a group that includes 7 individual stocks and currently sits at #83 in the Zacks Industry Rank. On average, stocks in this group have gained 42.6% this year, meaning that CSCO is performing better in terms of year-to-date returns.

Five9, however, belongs to the Internet - Software industry. Currently, this 174-stock industry is ranked #90. The industry has moved -4.5% so far this year.

Cisco Systems and Five9 could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.

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This article originally published on Zacks Investment Research (zacks.com).

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