The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Applied Materials (AMAT) 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.
Applied Materials is one of 612 companies in the Computer and Technology group. The Computer and Technology group currently sits at #3 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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. Applied Materials is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for AMAT's full-year earnings has moved 1.2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, AMAT has returned 26.6% so far this year. In comparison, Computer and Technology companies have returned an average of 25.8%. This means that Applied Materials is performing better than its sector in terms of year-to-date returns.
Another Computer and Technology stock, which has outperformed the sector so far this year, is ASML (ASML). The stock has returned 27.1% year-to-date.
The consensus estimate for ASML's current year EPS has increased 2.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Applied Materials belongs to the Electronics - Semiconductors industry, a group that includes 47 individual stocks and currently sits at #49 in the Zacks Industry Rank. On average, this group has gained an average of 42.4% so far this year, meaning that AMAT is slightly underperforming its industry in terms of year-to-date returns.
ASML, however, belongs to the Semiconductor Equipment - Wafer Fabrication industry. Currently, this 2-stock industry is ranked #25. The industry has moved +96.8% so far this year.
Investors with an interest in Computer and Technology stocks should continue to track Applied Materials and ASML. These stocks will be looking to continue their solid performance.
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Applied Materials, Inc. (AMAT): Free Stock Analysis Report ASML Holding N.V. (ASML): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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