The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Advanced Energy Industries (AEIS) been one of those stocks this year? 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 a member of the Computer and Technology sector. This group includes 604 individual stocks and currently holds a Zacks Sector Rank of #3. 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).
Over the past 90 days, the Zacks Consensus Estimate for AEIS' full-year earnings has moved 10.9% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, AEIS has moved about 86.8% on a year-to-date basis. Meanwhile, the Computer and Technology sector has returned an average of 26.9% on a year-to-date basis. This means that Advanced Energy Industries is performing better than its sector in terms of year-to-date returns.
Reddit Inc. (RDDT) 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 27.4%.
In Reddit Inc.'s case, the consensus EPS estimate for the current year increased 30.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong 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 #4 in the Zacks Industry Rank. Stocks in this group have gained about 48.1% so far this year, so AEIS is performing better this group in terms of year-to-date returns.
On the other hand, Reddit Inc. belongs to the Internet - Software industry. This 168-stock industry is currently ranked #58. The industry has moved +9.4% year to date.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Advanced Energy Industries and Reddit Inc. as they could maintain their solid performance.
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Advanced Energy Industries, Inc. (AEIS): Free Stock Analysis Report Reddit Inc. (RDDT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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