The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Lattice Semiconductor (LSCC) 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.
Lattice Semiconductor is one of 593 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. Lattice Semiconductor is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for LSCC's full-year earnings has moved 13.2% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, LSCC has gained about 101% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 19.2% on a year-to-date basis. As we can see, Lattice Semiconductor is performing better than its sector in the calendar year.
One other Computer and Technology stock that has outperformed the sector so far this year is Allegro MicroSystems, Inc. (ALGM). The stock is up 85.8% year-to-date.
In Allegro MicroSystems, Inc.'s case, the consensus EPS estimate for the current year increased 10.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Lattice Semiconductor belongs to the Electronics - Semiconductors industry, which includes 47 individual stocks and currently sits at #49 in the Zacks Industry Rank. Stocks in this group have gained about 48.9% so far this year, so LSCC is performing better this group in terms of year-to-date returns. Allegro MicroSystems, Inc. is also part of the same industry.
Investors with an interest in Computer and Technology stocks should continue to track Lattice Semiconductor and Allegro MicroSystems, Inc.. These stocks will be looking to continue their solid performance.
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Lattice Semiconductor Corporation (LSCC): Free Stock Analysis Report
Allegro MicroSystems, Inc. (ALGM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).