Are Computer and Technology Stocks Lagging Monolithic Power Systems (MPWR) 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 Monolithic Power (MPWR) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Monolithic Power is a member of our Computer and Technology group, which includes 610 different companies and currently sits at #6 in 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 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. Monolithic Power is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for MPWR's full-year earnings has moved 5.8% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, MPWR has gained about 29.3% so far this year. At the same time, Computer and Technology stocks have lost an average of 2.6%. This means that Monolithic Power is outperforming the sector as a whole this year.

Another Computer and Technology stock, which has outperformed the sector so far this year, is Ericsson (ERIC). The stock has returned 14.7% year-to-date.

Over the past three months, Ericsson's consensus EPS estimate for the current year has increased 9%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Monolithic Power belongs to the Semiconductor - Analog and Mixed industry, which includes 10 individual stocks and currently sits at #36 in the Zacks Industry Rank. On average, stocks in this group have gained 24.5% this year, meaning that MPWR is performing better in terms of year-to-date returns.

On the other hand, Ericsson belongs to the Wireless Equipment industry. This 13-stock industry is currently ranked #90. The industry has moved +18.5% year to date.

Monolithic Power and Ericsson 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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