The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Astera Labs, Inc. (ALAB) 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.
Astera Labs, Inc. is one of 614 companies in the Computer and Technology group. The Computer and Technology group currently sits at #3 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. Astera Labs, Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for ALAB's full-year earnings has moved 43.9% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, ALAB has returned 82.8% so far this year. At the same time, Computer and Technology stocks have gained an average of 17.9%. This means that Astera Labs, Inc. is performing better than its sector in terms of year-to-date returns.
Another stock in the Computer and Technology sector, Avnet (AVT), has outperformed the sector so far this year. The stock's year-to-date return is 90.3%.
Over the past three months, Avnet's consensus EPS estimate for the current year has increased 43.1%. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Astera Labs, Inc. belongs to the Internet - Software industry, a group that includes 174 individual stocks and currently sits at #77 in the Zacks Industry Rank. Stocks in this group have lost about 0.4% so far this year, so ALAB is performing better this group in terms of year-to-date returns.
Avnet, however, belongs to the Electronics - Parts Distribution industry. Currently, this 4-stock industry is ranked #5. The industry has moved +64% so far this year.
Investors interested in the Computer and Technology sector may want to keep a close eye on Astera Labs, Inc. and Avnet as they attempt to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).