The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Astera Labs, Inc. (ALAB) 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.
Astera Labs, Inc. is one of 605 companies in the Computer and Technology group. The Computer and Technology group currently sits at #5 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 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. Astera Labs, Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for ALAB's full-year earnings has moved 72.5% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that ALAB has returned about 45% since the start of the calendar year. Meanwhile, the Computer and Technology sector has returned an average of 14.6% on a year-to-date basis. This means that Astera Labs, Inc. is performing better than its sector in terms of year-to-date returns.
One other Computer and Technology stock that has outperformed the sector so far this year is Gilat Satellite (GILT). The stock is up 48% year-to-date.
Over the past three months, Gilat Satellite's consensus EPS estimate for the current year has increased 18%. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Astera Labs, Inc. belongs to the Internet - Software industry, which includes 173 individual stocks and currently sits at #77 in the Zacks Industry Rank. On average, stocks in this group have gained 23.7% this year, meaning that ALAB is performing better in terms of year-to-date returns.
Gilat Satellite, however, belongs to the Satellite and Communication industry. Currently, this 7-stock industry is ranked #28. The industry has moved +9.3% so far this year.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Astera Labs, Inc. and Gilat Satellite as they could maintain their solid performance.
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Astera Labs, Inc. (ALAB): Free Stock Analysis Report Gilat Satellite Networks Ltd. (GILT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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