The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Advanced Energy Industries (AEIS) 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.
Advanced Energy Industries is a member of our Computer and Technology group, which includes 613 different companies and currently sits at #3 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. Advanced Energy Industries is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for AEIS' full-year earnings has moved 9.5% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, AEIS has gained about 37.4% so far this year. At the same time, Computer and Technology stocks have gained an average of 14.7%. As we can see, Advanced Energy Industries is performing better than its sector in the calendar year.
Another Computer and Technology stock, which has outperformed the sector so far this year, is Alphabet Inc. (GOOG). The stock has returned 15.9% year-to-date.
In Alphabet Inc.'s case, the consensus EPS estimate for the current year increased 24% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Advanced Energy Industries is a member of the Semiconductor Equipment - Wafer Fabrication industry, which includes 2 individual companies and currently sits at #112 in the Zacks Industry Rank. This group has gained an average of 62.8% so far this year, so AEIS is slightly underperforming its industry in this area.
On the other hand, Alphabet Inc. belongs to the Internet - Services industry. This 30-stock industry is currently ranked #112. The industry has moved +14.6% year to date.
Investors interested in the Computer and Technology sector may want to keep a close eye on Advanced Energy Industries and Alphabet Inc. as they attempt to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).