The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Broadcom Inc. (AVGO) been one of those stocks this year? 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.
Broadcom Inc. is one of 595 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 considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Broadcom Inc. is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for AVGO's full-year earnings has moved 14.5% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, AVGO has gained about 20.4% so far this year. At the same time, Computer and Technology stocks have gained an average of 17.3%. This means that Broadcom Inc. is outperforming the sector as a whole this year.
Another Computer and Technology stock, which has outperformed the sector so far this year, is ADTRAN Holdings (ADTN). The stock has returned 81.5% year-to-date.
For ADTRAN Holdings, the consensus EPS estimate for the current year has increased 20.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Broadcom Inc. is a member of the Electronics - Semiconductors industry, which includes 47 individual companies and currently sits at #49 in the Zacks Industry Rank. This group has gained an average of 40.4% so far this year, so AVGO is slightly underperforming its industry in this area.
On the other hand, ADTRAN Holdings belongs to the Communication - Components industry. This 13-stock industry is currently ranked #26. The industry has moved +139.9% year to date.
Investors with an interest in Computer and Technology stocks should continue to track Broadcom Inc. and ADTRAN Holdings. These stocks will be looking to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).