Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Is Applied Optoelectronics (AAOI) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.
Applied Optoelectronics is a member of the Computer and Technology sector. This group includes 613 individual stocks and currently holds a Zacks Sector Rank of #4. 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 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. Applied Optoelectronics is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for AAOI's full-year earnings has moved 18.4% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, AAOI has gained about 14.5% so far this year. In comparison, Computer and Technology companies have returned an average of -1.7%. As we can see, Applied Optoelectronics is performing better than its sector in the calendar year.
Apple (AAPL) 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 1.7%.
In Apple's case, the consensus EPS estimate for the current year increased 3.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Applied Optoelectronics belongs to the Electronics - Semiconductors industry, which includes 47 individual stocks and currently sits at #65 in the Zacks Industry Rank. Stocks in this group have lost about 4.2% so far this year, so AAOI is performing better this group in terms of year-to-date returns.
Apple, however, belongs to the Computer - Micro Computers industry. Currently, this 5-stock industry is ranked #207. The industry has moved +1.5% so far this year.
Investors interested in the Computer and Technology sector may want to keep a close eye on Applied Optoelectronics and Apple as they attempt to continue 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.
