Is Micron Technology (MU) Stock Outpacing Its Computer and Technology Peers 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. Micron (MU) 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? 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.

Micron is one of 613 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 groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

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. Micron is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for MU's full-year earnings has moved 38.5% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, MU has returned 225% so far this year. In comparison, Computer and Technology companies have returned an average of 16.7%. This means that Micron is outperforming the sector as a whole this year.

One other Computer and Technology stock that has outperformed the sector so far this year is Airgain (AIRG). The stock is up 28.8% year-to-date.

Over the past three months, Airgain's consensus EPS estimate for the current year has increased 14%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Micron belongs to the Computer - Integrated Systems industry, a group that includes 11 individual stocks and currently sits at #32 in the Zacks Industry Rank. Stocks in this group have gained about 105.2% so far this year, so MU is performing better this group in terms of year-to-date returns.

On the other hand, Airgain belongs to the Communication - Components industry. This 13-stock industry is currently ranked #33. The industry has moved +69.4% year to date.

Investors interested in the Computer and Technology sector may want to keep a close eye on Micron and Airgain as they attempt to continue their solid performance.

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

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