Are Computer and Technology Stocks Lagging Wireless Ronin Technologies (CREX) This Year?

Wireless Ronin Technologies Inc. (CREX) is outperforming the Computer and Technology sector, with a year-to-date return of 18% compared to the sector's average loss of 2.6%; this is further supported by a 46% increase in the Zacks Consensus Estimate for CREX's full-year earnings within the past quarter, leading to a Zacks Rank of #1 (Strong Buy). Similarly, CyberArk (CYBR) has also outperformed with a year-to-date return of 12.2% and a 72.5% increase in consensus EPS estimate over the past three months, also holding a Zacks Rank #1.

Analysis

Wireless Ronin Technologies Inc. (CREX) and CyberArk (CYBR) are demonstrating significant outperformance within the Computer and Technology sector, which has reported an average year-to-date loss of 2.6%. CREX has achieved an 18% year-to-date gain, substantially exceeding its sector and also outperforming its Internet - Software industry peers, which have collectively gained 5.3% year-to-date. This strong performance is supported by a Zacks Rank of #1 (Strong Buy), attributed to a significant 46% upward revision in its full-year earnings consensus estimate over the past quarter. Similarly, CyberArk has posted a 12.2% year-to-date return and also holds a Zacks Rank #1 (Strong Buy), following a substantial 72.5% increase in its current year consensus EPS estimate over the last three months. While CyberArk outperforms the broader technology sector, its stock performance trails its specific Security industry, which has appreciated by 15.8% year-to-date. The positive earnings estimate revisions for both companies indicate strengthening analyst sentiment and improving fundamental outlooks, marking them as noteworthy within a challenged sector.

Key Decisions for Investors

• Investors should consider the significant upward revisions in earnings estimates and the Zacks Rank #1 (Strong Buy) for both CREX and CYBR as strong positive indicators that may signal continued outperformance.
• Evaluate CREX and CYBR for potential inclusion in technology-focused portfolios, especially given their robust year-to-date returns in contrast to the broader Computer and Technology sector's decline.
• Closely monitor future earnings reports and ongoing analyst estimate revisions for these companies, as these factors have been pivotal to their recent positive performance and market perception.