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. CyberArk (CYBR) 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? 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.
CyberArk is one of 608 companies in the Computer and Technology group. The Computer and Technology group currently sits at #6 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. CyberArk is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for CYBR's full-year earnings has moved 2.1% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that CYBR has returned about 14.6% since the start of the calendar year. At the same time, Computer and Technology stocks have gained an average of 1.5%. As we can see, CyberArk is performing better than its sector in the calendar year.
Another stock in the Computer and Technology sector, CSG Systems (CSGS), has outperformed the sector so far this year. The stock's year-to-date return is 23.5%.
In CSG Systems' case, the consensus EPS estimate for the current year increased 4.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, CyberArk belongs to the Computers - IT Services industry, a group that includes 40 individual companies and currently sits at #59 in the Zacks Industry Rank. Stocks in this group have gained about 3.8% so far this year, so CYBR is performing better this group in terms of year-to-date returns.
CSG Systems, however, belongs to the Computer - Services industry. Currently, this 9-stock industry is ranked #43. The industry has moved +6% so far this year.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to CyberArk and CSG Systems as they could maintain their solid performance.
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