The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. EXFO (EXFO – 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? One simple way to answer this question is to take a look at the year-to-date performance of EXFO and the rest of the Computer and Technology group’s stocks.
EXFO is one of 641 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #6 in 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 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. EXFO is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for EXFO’s full-year earnings has moved 5.13% higher. This means that analyst sentiment is stronger and the stock’s earnings outlook is improving.
Based on the latest available data, EXFO has gained about 67.25% so far this year. At the same time, Computer and Technology stocks have gained an average of 22.36%. This shows that EXFO is outperforming its peers so far this year.
Looking more specifically, EXFO belongs to the Communication – Components industry, a group that includes 20 individual stocks and currently sits at #87 in the Zacks Industry Rank. On average, this group has gained an average of 28.05% so far this year, meaning that EXFO is performing better in terms of year-to-date returns.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to EXFO as it looks to continue its solid performance.