The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Advanced Energy Industries (AEIS) one of those stocks right now? 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.
Advanced Energy Industries is one of 621 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #4 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Advanced Energy Industries is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for AEIS' full-year earnings has moved 23.4% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, AEIS has moved about 45.3% on a year-to-date basis. Meanwhile, stocks in the Computer and Technology group have gained about 22.8% on average. This shows that Advanced Energy Industries is outperforming its peers so far this year.
One other Computer and Technology stock that has outperformed the sector so far this year is Digital Turbine (APPS). The stock is up 123.4% year-to-date.
For Digital Turbine, the consensus EPS estimate for the current year has increased 10.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Advanced Energy Industries is a member of the Semiconductor Equipment - Wafer Fabrication industry, which includes 2 individual companies and currently sits at #7 in the Zacks Industry Rank. Stocks in this group have gained about 67.8% so far this year, so AEIS is slightly underperforming its industry this group in terms of year-to-date returns.
Digital Turbine, however, belongs to the Internet - Software industry. Currently, this 178-stock industry is ranked #86. The industry has moved +10.2% so far this year.
Investors interested in the Computer and Technology sector may want to keep a close eye on Advanced Energy Industries and Digital Turbine as they attempt to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).