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

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) 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 614 different companies and currently sits at #2 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. Arista Networks is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for ANET's full-year earnings has moved 1.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, ANET has gained about 50.6% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 16.9% on average. This shows that Arista Networks is outperforming its peers so far this year.

One other Computer and Technology stock that has outperformed the sector so far this year is Ciena (CIEN). The stock is up 74.8% year-to-date.

Over the past three months, Ciena's consensus EPS estimate for the current year has increased 5.4%. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Arista Networks is a member of the Internet - Software industry, which includes 174 individual companies and currently sits at #107 in the Zacks Industry Rank. Stocks in this group have lost about 4.6% so far this year, so ANET is performing better this group in terms of year-to-date returns.

Ciena, however, belongs to the Communication - Components industry. Currently, this 13-stock industry is ranked #67. The industry has moved +86.2% so far this year.

Investors interested in the Computer and Technology sector may want to keep a close eye on Arista Networks and Ciena as they attempt to continue their solid performance.

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

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