Is CSG Systems International (CSGS) Stock Outpacing Its Computer and Technology Peers This Year?

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. Has CSG Systems (CSGS) been one of those stocks this year? 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.

CSG Systems is a member of our Computer and Technology group, which includes 655 different companies and currently sits at #5 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

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. CSG Systems is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for CSGS' full-year earnings has moved 2.7% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that CSGS has returned about 0.6% since the start of the calendar year. At the same time, Computer and Technology stocks have lost an average of 35.9%. This means that CSG Systems is outperforming the sector as a whole this year.

Another Computer and Technology stock, which has outperformed the sector so far this year, is Fabrinet (FN). The stock has returned 2.9% year-to-date.

In Fabrinet's case, the consensus EPS estimate for the current year increased 5.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, CSG Systems is a member of the Computer - Services industry, which includes 7 individual companies and currently sits at #43 in the Zacks Industry Rank. On average, stocks in this group have lost 14.5% this year, meaning that CSGS is performing better in terms of year-to-date returns.

On the other hand, Fabrinet belongs to the Electronics - Miscellaneous Components industry. This 28-stock industry is currently ranked #156. The industry has moved -29.9% year to date.

CSG Systems and Fabrinet 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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