Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Aehr Test Systems (AEHR) 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.
Aehr Test Systems 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 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. Aehr Test Systems is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for AEHR's full-year earnings has moved 22.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, AEHR has gained about 357.3% so far this year. In comparison, Computer and Technology companies have returned an average of 21.3%. This means that Aehr Test Systems 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 Cisco Systems (CSCO). The stock is up 56.3% year-to-date.
For Cisco Systems, 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).
To break things down more, Aehr Test Systems belongs to the Electronics - Measuring Instruments industry, a group that includes 5 individual companies and currently sits at #7 in the Zacks Industry Rank. On average, this group has gained an average of 69.3% so far this year, meaning that AEHR is performing better in terms of year-to-date returns.
In contrast, Cisco Systems falls under the Computer - Networking industry. Currently, this industry has 7 stocks and is ranked #30. Since the beginning of the year, the industry has moved +56%.
Investors with an interest in Computer and Technology stocks should continue to track Aehr Test Systems and Cisco Systems. These stocks will be looking to continue their solid performance.
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Aehr Test Systems (AEHR): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).