Technology stocks

Has Celestica (CLS) outperformed other IT and technology stocks this year?

For those looking to find strong IT and technology stocks, it is prudent to look for group companies that outperform their peers. Is Celestica (CLS) one of those stocks right now? Let’s take a closer look at the stock’s year-to-date performance to find out.

Celestica is one of 667 individual stocks in the IT and technology sector. Collectively, these companies rank 9th in the Zacks industry rankings. The Zacks Sector Ranking assesses the strength of our 16 individual sector groups by measuring the average Zacks Ranking of individual stocks within the groups.

The Zacks Rankings is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that display the right characteristics to beat the market over the next one to three months. Celestica currently sports a Zacks rank of #1 (Strong Buy).

Over the past quarter, the Zacks consensus estimate for CLS’s full-year earnings rose 8.1%. This signals that analyst sentiment is improving and the stock’s earnings outlook is more positive.

According to our latest data, CLS has evolved by around 10.7% since the beginning of the year. By comparison, IT and technology companies posted an average return of -12.9%. As we can see, Celestica is performing better than its industry over the calendar year.

Another IT and technology stock that has outperformed the sector so far this year is Fair Isaac (FICO). The stock is up 17.4% since the start of the year.

For Fair Isaac, the consensus EPS estimate for the current year has risen 14.5% over the past three months. The stock currently has a Zacks rank #2 (buy).

To break it down further, Celestica belongs to the Electronics Industry – Manufacturing Services, a group that comprises 5 individual companies and is currently ranked 195th in the Zacks industry rankings. Shares in this group have lost around 10.7% so far this year, so CLS is doing better in this group in terms of year-to-date returns.

Fair Isaac, however, belongs to the Computers – Computer Services industry. Currently, this 38-stock industry is ranked #101. The industry is up -13.8% so far this year.

Investors interested in the IT and technology sector may want to keep a close eye on Celestica and Fair Isaac as they attempt to continue their strong performance.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.