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. Has Applied Materials (AMAT) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Applied Materials is one of 592 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 system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Applied Materials is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for AMAT's full-year earnings has moved 8.2% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, AMAT has gained about 76.3% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 16.1% on average. This means that Applied Materials is performing better than its sector in terms of year-to-date returns.
Another stock in the Computer and Technology sector, A10 Networks (ATEN), has outperformed the sector so far this year. The stock's year-to-date return is 72.8%.
The consensus estimate for A10 Networks' current year EPS has increased 4.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Applied Materials belongs to the Electronics - Semiconductors industry, which includes 47 individual stocks and currently sits at #50 in the Zacks Industry Rank. Stocks in this group have gained about 43% so far this year, so AMAT is performing better this group in terms of year-to-date returns.
In contrast, A10 Networks falls under the Internet - Software industry. Currently, this industry has 170 stocks and is ranked #78. Since the beginning of the year, the industry has moved -11%.
Investors interested in the Computer and Technology sector may want to keep a close eye on Applied Materials and A10 Networks as they attempt to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).