Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even ...

Industry Overview - The Zacks Computer - Networking industry is poised for growth driven by advancements in cloud computing, network security, big data, and next-gen connectivity, particularly with the rapid adoption of AI technology [1][2] - The proliferation of AI workloads and hyperscale data centers is leading to increased investments in high-speed interconnects, optical networking, and Ethernet switches [1] - The deployment of 5G technology is enhancing the Internet of Things (IoT), Advanced Driver Assistance Systems, AR/VR devices, and 5G smartphones, thereby increasing demand for robust networking infrastructure [1] Trends Influencing the Industry - The explosion of AI workloads necessitates significant upgrades in observability infrastructure, increasing the demand for innovative networking products [2] - The rapid deployment of 5G technology is expected to boost growth prospects, with substantial investments required to upgrade core fiber backhaul networks [5] - The upcoming Wi-Fi 7 upgrade cycle is anticipated to drive momentum in the industry, addressing Wi-Fi spectrum shortages and supporting a higher number of connected devices [6] Company Performance - NetScout Systems reported a 15% year-over-year revenue increase to $219 million in Q2 of fiscal 2026, driven by demand across enterprise and service provider markets [20] - Digi International achieved a 9% year-over-year revenue growth of $114 million in fiscal 2025, with a 31% surge in Annual Recurring Revenue (ARR) to $152 million [28] - Lantronix reported a 3% year-over-year revenue increase to $29.8 million in Q1 of fiscal 2026, with significant growth in its unmanned aerial systems segment [34] Stock Market Performance - The Zacks Computer - Networking industry has outperformed the S&P 500 Composite and the broader Zacks Computer and Technology sector, gaining 33.4% over the past year compared to the sector's 23.9% and the S&P 500's 12.9% [11] - The industry is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 22.45X, slightly below the S&P 500's 22.78X and the sector's 27.8X [14] Future Outlook - The Zacks Industry Rank for the Computer - Networking industry is 38, placing it in the top 16% of over 243 Zacks industries, indicating bright near-term prospects [9] - Companies in the industry are focusing on innovation in networking technologies, including network virtualization and Software-Defined Networking, to meet the growing demand for secure infrastructure [4]

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. Lyft (LYFT) 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? Let's take a closer look at the stock's year-to-date performance to find out.Lyft is one of 604 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #2 in the Zacks Sect ...

Core Insights - Digi International reported quarterly earnings of $0.56 per share, exceeding the Zacks Consensus Estimate of $0.51 per share, and showing an increase from $0.52 per share a year ago, resulting in an earnings surprise of +9.80% [1] - The company achieved revenues of $114.34 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.24% and increasing from $105.05 million year-over-year [2] - Digi International's stock has increased approximately 18.1% since the beginning of the year, outperforming the S&P 500's gain of 16.4% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.52 on revenues of $112.95 million, while for the current fiscal year, the estimate is $2.20 on revenues of $462.25 million [7] - The estimate revisions trend for Digi International was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Computer - Networking industry, to which Digi International belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Core Insights - Cisco Systems reported quarterly earnings of $1 per share, exceeding the Zacks Consensus Estimate of $0.98 per share, and up from $0.91 per share a year ago, representing an earnings surprise of +2.04% [1] - The company achieved revenues of $14.88 billion for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 0.71% and increasing from $13.84 billion year-over-year [2] - Cisco has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Financial Performance - Cisco's earnings surprise for the previous quarter was +2.06%, with actual earnings of $0.99 per share against an expected $0.97 [1] - The stock has appreciated approximately 21.1% since the beginning of the year, outperforming the S&P 500's gain of 16.4% [3] Future Outlook - The company's future stock performance will largely depend on management's commentary during the earnings call and the revisions of earnings estimates [3][4] - Current consensus EPS estimate for the upcoming quarter is $0.99 on revenues of $14.65 billion, and for the current fiscal year, it is $4.04 on revenues of $59.59 billion [7] Industry Context - The Computer - Networking industry, to which Cisco belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5][6]

Core Insights - Intrusion Inc. reported a quarterly loss of $0.1 per share, which aligns with the Zacks Consensus Estimate, showing improvement from a loss of $0.35 per share a year ago [1] - The company generated revenues of $1.97 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 2.93% and up from $1.5 million year-over-year [2] - Intrusion shares have declined approximately 41.8% year-to-date, contrasting with the S&P 500's gain of 16.2% [3] Financial Performance - The company has not surpassed consensus EPS estimates over the last four quarters [1] - The current consensus EPS estimate for the upcoming quarter is -$0.08 on revenues of $2.16 million, and for the current fiscal year, it is -$0.38 on revenues of $7.74 million [7] Market Outlook - The earnings outlook and estimate revisions trend for Intrusion are currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - The Computer - Networking industry, to which Intrusion belongs, is ranked in the bottom 36% of over 250 Zacks industries, suggesting potential challenges ahead [8] Industry Comparison - Another company in the same industry, Radcom (RDCM), is set to report its quarterly results on November 12, with expected earnings of $0.22 per share, reflecting a year-over-year decline of 4.4% [9] - Radcom's anticipated revenues are $17.9 million, representing a 13.2% increase from the previous year [10]

Core Insights - NetScout Systems (NTCT) reported quarterly earnings of $0.62 per share, exceeding the Zacks Consensus Estimate of $0.45 per share, and up from $0.47 per share a year ago [1] - The earnings surprise was +37.78%, with the company having surpassed consensus EPS estimates three times in the last four quarters [2] - The company generated revenues of $219.02 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 9.43% and increasing from $191.11 million year-over-year [3] Financial Performance - NetScout's earnings surprise of +37.78% indicates strong performance relative to expectations [2] - The company has consistently exceeded revenue estimates, achieving this four times over the last four quarters [3] - Year-to-date, NetScout shares have increased by approximately 26.1%, outperforming the S&P 500's gain of 15.6% [4] Future Outlook - The company's earnings outlook is crucial for assessing future stock performance, with current consensus EPS estimates at $0.88 for the upcoming quarter and $2.35 for the current fiscal year [8] - The Zacks Rank for NetScout is currently 3 (Hold), suggesting expected performance in line with the market in the near future [7] - The Computer - Networking industry, to which NetScout belongs, is currently ranked in the bottom 37% of Zacks industries, which may impact stock performance [9] Industry Context - The performance of NetScout's stock may be influenced by the overall outlook for the Computer - Networking industry [9] - Another company in the same industry, Digi International (DGII), is expected to report quarterly earnings soon, with estimates indicating a slight year-over-year decline [10][11]

Core Insights - Lantronix, Inc. reported quarterly earnings of $0.04 per share, exceeding the Zacks Consensus Estimate of $0.03 per share, but down from $0.06 per share a year ago, indicating an earnings surprise of +33.33% [1] - The company posted revenues of $29.79 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 0.36% and down from $34.42 million year-over-year [2] - Lantronix shares have increased by approximately 13.1% since the beginning of the year, compared to a 15.1% gain in the S&P 500 [3] Earnings Outlook - The future performance of Lantronix's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is $0.04 on revenues of $30.9 million, and for the current fiscal year, it is $0.23 on revenues of $127.4 million [7] Industry Context - The Computer - Networking industry, to which Lantronix belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, which may impact the stock's performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5][6]

Core Insights - Cisco Systems, Inc. is a leading technology company in networking hardware, software, and telecommunications equipment, competing with Juniper Networks and Arista Networks [1] - David Vogt from UBS has set a price target of $88 for Cisco, indicating a potential upside of 20.37% from its current trading price of $73.11 [1][5] Stock Performance - Cisco's stock has increased by 6.1% over the past month, outperforming the Zacks S&P 500 composite's increase of 3.8% [2][5] - The Computer - Networking industry, which includes Cisco, gained 7.7% during the same period, showcasing Cisco's strong position within its sector [2] Earnings Estimates - Earnings estimate revisions are crucial for Cisco, providing insights into the company's future earnings potential and significantly influencing stock performance [3][5] - Investors and analysts closely monitor these projections to gauge Cisco's future stock direction [3] Current Stock Metrics - Cisco's current stock price is $73.11, reflecting a slight increase of 0.27% from the previous session [4] - The stock has traded between $72.43 and $73.48 today, with a 52-week high of $73.48 and a low of $52.11 [4] - Cisco's market capitalization is approximately $289 billion, with a trading volume of 24,007,995 shares today [4]

Core Insights - NETGEAR, Inc. reported quarterly earnings of $0.12 per share, exceeding the Zacks Consensus Estimate of a loss of $0.09 per share, but down from $0.17 per share a year ago, resulting in an earnings surprise of +233.33% [1] - The company achieved revenues of $184.56 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 6.98% and showing a slight increase from $182.85 million year-over-year [2] - NETGEAR shares have increased approximately 21.7% year-to-date, outperforming the S&P 500's gain of 17.2% [3] Earnings Outlook - The future performance of NETGEAR's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.01 on revenues of $184.77 million, while for the current fiscal year, it is -$0.02 on revenues of $689.85 million [7] Industry Context - The Computer - Networking industry, to which NETGEAR belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact NETGEAR's stock performance [5][6]