The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Advanced Energy Industries (AEIS) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.
Advanced Energy Industries is one of 619 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 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).
Over the past three months, the Zacks Consensus Estimate for AEIS' full-year earnings has moved 21.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that AEIS has returned about 18.2% since the start of the calendar year. Meanwhile, stocks in the Computer and Technology group have gained about 18% on average. This shows that Advanced Energy Industries is outperforming its peers so far this year.
Another stock in the Computer and Technology sector, Applied Materials (AMAT), has outperformed the sector so far this year. The stock's year-to-date return is 59.1%.
In Applied Materials' case, the consensus EPS estimate for the current year increased 5.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Advanced Energy Industries belongs to the Semiconductor Equipment - Wafer Fabrication industry, a group that includes 2 individual companies and currently sits at #31 in the Zacks Industry Rank. On average, stocks in this group have gained 55.3% this year, meaning that AEIS is slightly underperforming its industry in terms of year-to-date returns.
On the other hand, Applied Materials belongs to the Electronics - Semiconductors industry. This 50-stock industry is currently ranked #160. The industry has moved +15.9% year to date.
Investors interested in the Computer and Technology sector may want to keep a close eye on Advanced Energy Industries and Applied Materials as they attempt to continue their solid performance.
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Advanced Energy Industries, Inc. (AEIS): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).