For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Ericsson (ERIC) 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.

Ericsson is a member of our Computer and Technology group, which includes 607 different companies and currently sits at #8 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Ericsson is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for ERIC's full-year earnings has moved 21.4% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, ERIC has moved about 9.9% on a year-to-date basis. Meanwhile, the Computer and Technology sector has returned an average of -3% on a year-to-date basis. This shows that Ericsson is outperforming its peers so far this year.

Another stock in the Computer and Technology sector, Celestica (CLS), has outperformed the sector so far this year. The stock's year-to-date return is 23.5%.

Over the past three months, Celestica's consensus EPS estimate for the current year has increased 1.7%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Ericsson belongs to the Wireless Equipment industry, which includes 12 individual stocks and currently sits at #18 in the Zacks Industry Rank. On average, stocks in this group have gained 3.9% this year, meaning that ERIC is performing better in terms of year-to-date returns.

Celestica, however, belongs to the Electronics - Manufacturing Services industry. Currently, this 4-stock industry is ranked #177. The industry has moved +11.2% so far this year.

Ericsson and Celestica could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.

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This article originally published on Zacks Investment Research (zacks.com).

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