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. Avnet (AVT) 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.
Avnet is a member of our Computer and Technology group, which includes 597 different companies and currently sits at #2 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Avnet is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for AVT's full-year earnings has moved 5.9% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, AVT has returned 49.2% so far this year. At the same time, Computer and Technology stocks have gained an average of 2.4%. This means that Avnet is outperforming the sector as a whole this year.
Applied Materials (AMAT) is another Computer and Technology stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 54%.
For Applied Materials, the consensus EPS estimate for the current year has increased 16.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Avnet belongs to the Electronics - Parts Distribution industry, a group that includes 4 individual stocks and currently sits at #8 in the Zacks Industry Rank. On average, stocks in this group have gained 38.9% this year, meaning that AVT is performing better in terms of year-to-date returns.
Applied Materials, however, belongs to the Electronics - Semiconductors industry. Currently, this 47-stock industry is ranked #92. The industry has moved +21.1% so far this year.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Avnet and Applied Materials as they could maintain their solid performance.
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Avnet, Inc. (AVT): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).