Is ASE Technology (ASX) Outperforming Other Computer and Technology Stocks This Year?

The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. ASE Technology Hldg (ASX) 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.

ASE Technology Hldg is one of 619 companies in the Computer and Technology group. The Computer and Technology group currently sits at #3 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

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. ASE Technology Hldg is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for ASX's full-year earnings has moved 12.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, ASX has gained about 153.2% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 16.6% on a year-to-date basis. As we can see, ASE Technology Hldg is performing better than its sector in the calendar year.

One other Computer and Technology stock that has outperformed the sector so far this year is DocuSign (DOCU). The stock is up 17.4% year-to-date.

In DocuSign's case, the consensus EPS estimate for the current year increased 5.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, ASE Technology Hldg is a member of the Electronics - Semiconductors industry, which includes 50 individual companies and currently sits at #171 in the Zacks Industry Rank. This group has gained an average of 14.2% so far this year, so ASX is performing better in this area.

On the other hand, DocuSign belongs to the Internet - Software industry. This 178-stock industry is currently ranked #75. The industry has moved +4.2% year to date.

Investors interested in the Computer and Technology sector may want to keep a close eye on ASE Technology Hldg and DocuSign as they attempt to continue their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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