The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Monolithic Power (MPWR) 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.
Monolithic Power is one of 592 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #1 in 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 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. Monolithic Power is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for MPWR's full-year earnings has moved 18.4% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that MPWR has returned about 72.5% since the start of the calendar year. Meanwhile, stocks in the Computer and Technology group have gained about 20% on average. This shows that Monolithic Power is outperforming its peers so far this year.
Arrow Electronics (ARW) is another Computer and Technology stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 111.2%.
In Arrow Electronics' case, the consensus EPS estimate for the current year increased 44.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Monolithic Power belongs to the Semiconductor - Analog and Mixed industry, a group that includes 10 individual companies and currently sits at #4 in the Zacks Industry Rank. Stocks in this group have gained about 69.7% so far this year, so MPWR is performing better this group in terms of year-to-date returns.
On the other hand, Arrow Electronics belongs to the Electronics - Parts Distribution industry. This 4-stock industry is currently ranked #19. The industry has moved +73% year to date.
Monolithic Power and Arrow Electronics 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
Monolithic Power Systems, Inc. (MPWR): Free Stock Analysis Report
Arrow Electronics, Inc. (ARW): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).