Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Allegro MicroSystems, Inc. (ALGM) 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.
Allegro MicroSystems, Inc. is one of 607 companies in the Computer and Technology group. The Computer and Technology group currently sits at #5 within the Zacks Sector Rank. 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 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. Allegro MicroSystems, Inc. is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for ALGM's full-year earnings has moved 21.8% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, ALGM has moved about 64.4% on a year-to-date basis. At the same time, Computer and Technology stocks have gained an average of 8.2%. This means that Allegro MicroSystems, Inc. is performing better than its sector in terms of year-to-date returns.
One other Computer and Technology stock that has outperformed the sector so far this year is Jabil (JBL). The stock is up 57.1% year-to-date.
For Jabil, the consensus EPS estimate for the current year has increased 4.7% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Allegro MicroSystems, Inc. is a member of the Electronics - Semiconductors industry, which includes 44 individual companies and currently sits at #143 in the Zacks Industry Rank. Stocks in this group have gained about 14.9% so far this year, so ALGM is performing better this group in terms of year-to-date returns.
On the other hand, Jabil belongs to the Electronics - Manufacturing Services industry. This 4-stock industry is currently ranked #47. The industry has moved +47.6% year to date.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Allegro MicroSystems, Inc. and Jabil as they could maintain their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
