Has ASML Holding (ASML) Outpaced 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. ASML (ASML) 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? 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.

ASML is one of 608 companies in the Computer and Technology group. The Computer and Technology group currently sits at #4 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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

Within the past quarter, the Zacks Consensus Estimate for ASML's full-year earnings has moved 7.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that ASML has returned about 9.6% since the start of the calendar year. At the same time, Computer and Technology stocks have gained an average of 1.6%. As we can see, ASML is performing better than its sector in the calendar year.

One other Computer and Technology stock that has outperformed the sector so far this year is Bentley Systems, Incorporated (BSY). The stock is up 7.9% year-to-date.

For Bentley Systems, Incorporated, the consensus EPS estimate for the current year has increased 4.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, ASML is a member of the Semiconductor Equipment - Wafer Fabrication industry, which includes 2 individual companies and currently sits at #16 in the Zacks Industry Rank. On average, stocks in this group have gained 9.6% this year, meaning that ASML is performing better in terms of year-to-date returns.

In contrast, Bentley Systems, Incorporated falls under the Internet - Software industry. Currently, this industry has 169 stocks and is ranked #53. Since the beginning of the year, the industry has moved +13%.

Investors with an interest in Computer and Technology stocks should continue to track ASML and Bentley Systems, Incorporated. 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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