IInvestors interested in IT and technology stocks should always look for the best performing companies in the cluster. Canon (CAJ) is a stock that can certainly catch the eye of many investors, but do its recent returns compare favorably to those of the sector as a whole? A quick look at the company’s year-to-date performance against the rest of the IT and technology industry should help answer that question.
Canon is a member of the IT and Technology sector. This group comprises 664 individual stocks and currently holds a Zacks sector rank of #9. The Zacks Sector Rankings include 16 different groups and are ranked from best to worst in terms of the average Zacks Ranking of individual companies in each of these sectors.
The Zacks ranking emphasizes earnings estimates and estimate revisions to find stocks with improved earnings prospects. This system has a long history of success, and these stocks tend to beat the market over the next one to three months. Canon currently sports a Zacks rating of #2 (buy).
Over the past quarter, the Zacks consensus estimate for CAJ’s annual earnings rose 6.8%. This shows that analyst sentiment has improved and the company’s earnings outlook is stronger.
Our latest available data shows that CAJ has returned around 0.1% since the start of the calendar year. By comparison, IT and technology companies posted an average return of -7.8%. As can be seen, Canon outperformed its industry over the calendar year.
Another IT & Technology stock, Apple (AAPL), has outperformed the sector so far this year. The return on the share since the beginning of the year is 0.8%.
In the case of Apple, the current-year EPS consensus estimate has risen 5.8% over the past three months. The stock currently has a Zacks rank #2 (buy).
Breaking down further, Canon is a member of the office automation and equipment industry, which comprises 5 individual companies and is currently ranked 73rd in the Zacks Industry rankings. On average, this group has lost an average of 0.6% so far this year, which means CAJ is showing better results in terms of returns since the start of the year.
On the other hand, Apple belongs to the computer industry – minicomputers. This 4-stock industry is currently ranked #108. The industry has grown by +1% since the start of the year.
Investors interested in computer and technology stocks should continue to follow Canon and Apple. These stocks will look to continue their strong performance.
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