The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Allegro MicroSystems, Inc. (ALGM) one of those stocks right now? 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.
Allegro MicroSystems, Inc. is one of 596 companies in the Computer and Technology group. The Computer and Technology group currently sits at #2 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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. Allegro MicroSystems, Inc. is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for ALGM's full-year earnings has moved 5.1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that ALGM has returned about 83.4% since the start of the calendar year. In comparison, Computer and Technology companies have returned an average of 16.5%. As we can see, Allegro MicroSystems, Inc. is performing better than its sector in the calendar year.
Another stock in the Computer and Technology sector, Jabil (JBL), has outperformed the sector so far this year. The stock's year-to-date return is 60.2%.
The consensus estimate for Jabil's current year EPS has increased 6.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Allegro MicroSystems, Inc. belongs to the Electronics - Semiconductors industry, a group that includes 47 individual stocks and currently sits at #53 in the Zacks Industry Rank. On average, stocks in this group have gained 43% this year, meaning that ALGM is performing better in terms of year-to-date returns.
In contrast, Jabil falls under the Electronics - Manufacturing Services industry. Currently, this industry has 4 stocks and is ranked #32. Since the beginning of the year, the industry has moved +48%.
Allegro MicroSystems, Inc. and Jabil could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power .
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Allegro MicroSystems, Inc. (ALGM): Free Stock Analysis Report
Jabil, Inc. (JBL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).