Is Salesforce ( CRM ) stock outperforming its computer and technology rivals this year?

For those looking to find strong computer and technology stocks, it’s wise to look for companies in a group that are outperforming their peers. Salesforce.com (CRM) is a stock that can certainly attract the attention of many investors, but do its recent returns compare favorably to the sector as a whole? If we look at the stock’s year-to-date performance compared to its peers in the computer and technology category, we might be able to answer that question.

Salesforce.com is one of 622 companies in the Computer and Technology group. The computer and technology group is currently ranked #6 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is ranked from best to worst in terms of the average Zacks Rank of individual companies within each of these sectors.

The Zacks Rank is a successful stock selection model that emphasizes earnings estimates and revisions to estimates. The system highlights a number of different stocks that could outperform the broader market in the next one to three months. Salesforce.com currently has a Zacks Rank #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for CRM’s full-year earnings has risen 2.5% higher. This means analyst sentiment is stronger and the stock’s earnings outlook is improving.

Our latest data available shows that CRM has returned around 19.6% since the start of the calendar year. Meanwhile, the computer and technology sector has averaged a return of 10.8% year-to-date. That means Salesforce.com is outperforming the sector as a whole this year.

CyberArk ( CYBR ) is another computer and technology stock that has outperformed the sector this year. Since the beginning of the year, the stock has returned 20.9%.

Over the past three months, CyberArk’s current year EPS consensus estimate has risen 12.4%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Salesforce.com belongs to the Computer Software industry, a group that includes 36 individual stocks and is currently ranked #52 on the Zacks Industry Rank. On average, stocks in this group are up 10.6% this year, meaning CRM is outperforming in terms of year-to-date returns.

In contrast, CyberArk belongs to Computers – IT Services industry. Currently, this industry has 39 stocks and is ranked 66th. Since the beginning of the year, the industry has grown +12.8%.

Going forward, investors interested in computer and technology stocks should continue to pay attention to Salesforce.com and CyberArk as they could maintain their solid performance.

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