Is Applied Materials (AMAT) Outperforming Other Computer and Technology Stocks This Year?

The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Applied Materials (AMAT) one of those stocks right now? 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.

Applied Materials is a member of the Computer and Technology sector. This group includes 609 individual stocks and currently holds a Zacks Sector Rank of #6. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

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. Applied Materials is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for AMAT's full-year earnings has moved 15.1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, AMAT has returned 47.1% so far this year. At the same time, Computer and Technology stocks have lost an average of 1.2%. This means that Applied Materials is outperforming the sector as a whole this year.

AUO (AUOTY) is another Computer and Technology stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 33.8%.

Over the past three months, AUO's consensus EPS estimate for the current year has increased 7.7%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Applied Materials belongs to the Electronics - Semiconductors industry, which includes 47 individual stocks and currently sits at #84 in the Zacks Industry Rank. This group has gained an average of 5.4% so far this year, so AMAT is performing better in this area.

On the other hand, AUO belongs to the Electronics - Miscellaneous Components industry. This 26-stock industry is currently ranked #33. The industry has moved +17% year to date.

Investors with an interest in Computer and Technology stocks should continue to track Applied Materials and AUO. These stocks will be looking to continue their solid performance.

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

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