The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Credo Technology Group Holding Ltd. (CRDO) 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? Let's take a closer look at the stock's year-to-date performance to find out.
Credo Technology Group Holding Ltd. is one of 619 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #3 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 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. Credo Technology Group Holding Ltd. is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for CRDO's full-year earnings has moved 3.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, CRDO has gained about 20.1% so far this year. At the same time, Computer and Technology stocks have gained an average of 17.1%. This means that Credo Technology Group Holding Ltd. is outperforming the sector as a whole this year.
Amphenol (APH) 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 18.8%.
For Amphenol, the consensus EPS estimate for the current year has increased 9.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Credo Technology Group Holding Ltd. is a member of the Electronics - Semiconductors industry, which includes 50 individual companies and currently sits at #167 in the Zacks Industry Rank. This group has gained an average of 15.5% so far this year, so CRDO is performing better in this area.
In contrast, Amphenol falls under the Electronics - Connectors industry. Currently, this industry has 2 stocks and is ranked #5. Since the beginning of the year, the industry has moved +18.9%.
Investors with an interest in Computer and Technology stocks should continue to track Credo Technology Group Holding Ltd. and Amphenol. These stocks will be looking to continue their solid performance.
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Credo Technology Group Holding Ltd. (CRDO): Free Stock Analysis Report
Amphenol Corporation (APH): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).