Are Computer and Technology Stocks Lagging Advanced Energy Industries (AEIS) This Year?

For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Advanced Energy Industries (AEIS) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Advanced Energy Industries is a member of the Computer and Technology sector. This group includes 603 individual stocks and currently holds a Zacks Sector Rank of #2. 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 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. Advanced Energy Industries is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for AEIS' full-year earnings has moved 8.1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, AEIS has moved about 81.5% on a year-to-date basis. Meanwhile, the Computer and Technology sector has returned an average of 26.5% on a year-to-date basis. This means that Advanced Energy Industries 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 Reddit Inc. (RDDT). The stock is up 27% year-to-date.

Over the past three months, Reddit Inc.'s consensus EPS estimate for the current year has increased 30.3%. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Advanced Energy Industries belongs to the Semiconductor Equipment - Wafer Fabrication industry, which includes 2 individual stocks and currently sits at #4 in the Zacks Industry Rank. This group has gained an average of 50.7% so far this year, so AEIS is performing better in this area.

Reddit Inc., however, belongs to the Internet - Software industry. Currently, this 168-stock industry is ranked #69. The industry has moved +5% so far this year.

Investors interested in the Computer and Technology sector may want to keep a close eye on Advanced Energy Industries and Reddit Inc. as they attempt to continue their solid performance.

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

Zacks Investment Research