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 Monolithic Power (MPWR) 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.
Monolithic Power is one of 611 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #3 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 is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Monolithic Power is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for MPWR's full-year earnings has moved 1.4% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that MPWR has returned about 30.5% since the start of the calendar year. Meanwhile, the Computer and Technology sector has returned an average of 29.4% on a year-to-date basis. This means that Monolithic Power is outperforming the sector as a whole this year.
Another stock in the Computer and Technology sector, FormFactor (FORM), has outperformed the sector so far this year. The stock's year-to-date return is 31.5%.
For FormFactor, the consensus EPS estimate for the current year has increased 2.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Monolithic Power belongs to the Semiconductor - Analog and Mixed industry, a group that includes 10 individual companies and currently sits at #24 in the Zacks Industry Rank. On average, stocks in this group have gained 40.7% this year, meaning that MPWR is slightly underperforming its industry in terms of year-to-date returns.
On the other hand, FormFactor belongs to the Electronics - Semiconductors industry. This 47-stock industry is currently ranked #66. The industry has moved +44.1% year to date.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Monolithic Power and FormFactor as they could maintain their solid performance.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Monolithic Power Systems, Inc. (MPWR): Free Stock Analysis Report FormFactor, Inc. (FORM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
