Are Computer and Technology Stocks Lagging Arrow Electronics (ARW) This Year?

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. Arrow Electronics (ARW) 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? 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.

Arrow Electronics is one of 597 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #3 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

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. Arrow Electronics is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for ARW's full-year earnings has moved 14.2% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, ARW has gained about 56% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 4.4% on average. As we can see, Arrow Electronics is performing better than its sector in the calendar year.

Another stock in the Computer and Technology sector, Donnelley Financial Solutions (DFIN), has outperformed the sector so far this year. The stock's year-to-date return is 8.7%.

Over the past three months, Donnelley Financial Solutions' consensus EPS estimate for the current year has increased 30%. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Arrow Electronics belongs to the Electronics - Parts Distribution industry, a group that includes 4 individual stocks and currently sits at #8 in the Zacks Industry Rank. On average, stocks in this group have gained 38.1% this year, meaning that ARW is performing better in terms of year-to-date returns.

In contrast, Donnelley Financial Solutions falls under the Internet - Software and Services industry. Currently, this industry has 12 stocks and is ranked #35. Since the beginning of the year, the industry has moved +4.1%.

Investors with an interest in Computer and Technology stocks should continue to track Arrow Electronics and Donnelley Financial Solutions. These stocks will be looking to continue their solid performance.

#1 Semiconductor Stock to Buy (Not NVDA)

The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.

One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.

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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research