The computer and technology group has many attractive stocks, but investors should always look for companies that are outperforming their peers. Free field (CLFD – Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to those of the sector as a whole? Looking at the stock’s year-to-date performance against its IT and tech peers, we might be able to answer that question.
Clearfield is one of 663 companies in the IT and Technology group. The IT and technology group is currently ranked 10th in the Zacks industry rankings. 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 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. Clearfield currently sports a Zacks rank of #1 (Strong Buy).
Over the past 90 days, the Zacks consensus estimate for CLFD’s annual earnings has risen 13%. This is a sign of improving analyst sentiment and a positive trend in the earnings outlook.
Based on the most recent data, CLFD has returned 14.3% so far this year. By comparison, IT and technology companies posted an average return of -23.8%. It shows that Clearfield is outperforming its peers so far this year.
Another IT and technology stock that has outperformed the sector so far this year is Super Micro Computer (SMCI – free report). The stock has returned 25.7% since the start of the year.
In the case of Super Micro Computer, the current year EPS consensus estimate has risen 62% in the last three months. The stock currently has a Zacks #1 rank (Strong Buy).
Specifically, Clearfield belongs to the wireless equipment industry, a group that includes 16 individual stocks and is currently ranked 39th in the Zacks industry rankings. Shares in this group have lost around 18.4% so far this year, so CLFD is doing better in this group in terms of year-to-date returns.
On the other hand, Super Micro Computer belongs to computer storage device industry. This 8-title industry is currently ranked #80. The industry has evolved by -21.4% since the beginning of the year.
Going forward, investors interested in computer and technology stocks should continue to pay close attention to Clearfield and Super Micro Computer as they may maintain their strong performance.