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. Is Monolithic Power (MPWR) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Monolithic Power is one of 594 companies in the Computer and Technology group. The Computer and Technology group currently sits at #2 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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 #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for MPWR's full-year earnings has moved 18.4% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that MPWR has returned about 64% since the start of the calendar year. In comparison, Computer and Technology companies have returned an average of 16%. This means that Monolithic Power is outperforming the sector as a whole this year.
Another Computer and Technology stock, which has outperformed the sector so far this year, is CTS (CTS). The stock has returned 32.8% year-to-date.
For CTS, the consensus EPS estimate for the current year has increased 0.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Monolithic Power belongs to the Semiconductor - Analog and Mixed industry, which includes 10 individual stocks and currently sits at #12 in the Zacks Industry Rank. This group has gained an average of 59.8% so far this year, so MPWR is performing better in this area.
In contrast, CTS falls under the Electronics - Miscellaneous Components industry. Currently, this industry has 27 stocks and is ranked #54. Since the beginning of the year, the industry has moved -12.5%.
Monolithic Power and CTS could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.
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This article originally published on Zacks Investment Research (zacks.com).