Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.
Astera Labs, Inc. is one of 604 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #5 in 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 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. Astera Labs, Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for ALAB's full-year earnings has moved 67.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, ALAB has returned 73.3% so far this year. In comparison, Computer and Technology companies have returned an average of 18.9%. This means that Astera Labs, Inc. is outperforming the sector as a whole this year.
One other Computer and Technology stock that has outperformed the sector so far this year is AAC Technologies Holdings Inc. (AACAY). The stock is up 22.9% year-to-date.
For AAC Technologies Holdings Inc., the consensus EPS estimate for the current year has increased 10.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Astera Labs, Inc. belongs to the Internet - Software industry, which includes 172 individual stocks and currently sits at #71 in the Zacks Industry Rank. This group has gained an average of 22.7% so far this year, so ALAB is performing better in this area.
On the other hand, AAC Technologies Holdings Inc. belongs to the Electronics - Miscellaneous Components industry. This 24-stock industry is currently ranked #67. The industry has moved +33.6% year to date.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Astera Labs, Inc. and AAC Technologies Holdings Inc. as they could maintain their solid performance.
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Astera Labs, Inc. (ALAB): Free Stock Analysis Report AAC Technologies Holdings Inc. (AACAY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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