Is Arista Networks (ANET) Outperforming Other Computer and Technology Stocks This Year?

The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Arista Networks (ANET) 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? By taking a look at the stock’s year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.

Arista Networks is one of 619 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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. Arista Networks is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for ANET’s full-year earnings has moved 15.7% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, ANET has gained about 65.4% so far this year. In comparison, Computer and Technology companies have returned an average of 23.7%. This means that Arista Networks is performing better than its sector in terms of year-to-date returns.

One other Computer and Technology stock that has outperformed the sector so far this year is Methode (MEI). The stock is up 134.2% year-to-date.

The consensus estimate for Methode’s current year EPS has increased 14.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Arista Networks belongs to the Internet – Software industry, a group that includes 178 individual stocks and currently sits at #94 in the Zacks Industry Rank. On average, stocks in this group have gained 9.8% this year, meaning that ANET is performing better in terms of year-to-date returns.

Methode, however, belongs to the Electronics – Connectors industry. Currently, this 2-stock industry is ranked #28. The industry has moved +29.2% so far this year.

Investors with an interest in Computer and Technology stocks should continue to track Arista Networks and Methode. These stocks will be looking to continue their solid performance.

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