Is ARQIT QUANTUM (ARQQ) Outperforming Other Computer and Technology Stocks 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. Has Arqit Quantum Inc. (ARQQ) 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.

Arqit Quantum Inc. is a member of the Computer and Technology sector. This group includes 613 individual stocks and currently holds a Zacks Sector Rank of #1. 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. Arqit Quantum Inc. is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for ARQQ's full-year earnings has moved 9.5% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, ARQQ has returned 27.4% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 27.1% on a year-to-date basis. This shows that Arqit Quantum Inc. is outperforming its peers so far this year.

Another stock in the Computer and Technology sector, Dragonfly Energy Holdings Corp. (DFLI), has outperformed the sector so far this year. The stock's year-to-date return is 34.9%.

For Dragonfly Energy Holdings Corp., the consensus EPS estimate for the current year has increased 96.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Arqit Quantum Inc. is a member of the Internet - Software industry, which includes 174 individual companies and currently sits at #58 in the Zacks Industry Rank. On average, this group has gained an average of 7.9% so far this year, meaning that ARQQ is performing better in terms of year-to-date returns.

On the other hand, Dragonfly Energy Holdings Corp. belongs to the Electronics - Miscellaneous Products industry. This 35-stock industry is currently ranked #91. The industry has moved +34.3% year to date.

Arqit Quantum Inc. and Dragonfly Energy Holdings Corp. could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.

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

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