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. Advanced Micro Devices (AMD) 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? Let's take a closer look at the stock's year-to-date performance to find out.
Advanced Micro Devices is one of 597 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #2 in 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Advanced Micro Devices is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for AMD's full-year earnings has moved 4.4% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, AMD has gained about 56.3% so far this year. In comparison, Computer and Technology companies have returned an average of 9.1%. This means that Advanced Micro Devices is outperforming the sector as a whole this year.
One other Computer and Technology stock that has outperformed the sector so far this year is ADTRAN Holdings (ADTN). The stock is up 92.6% year-to-date.
The consensus estimate for ADTRAN Holdings' current year EPS has increased 1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Advanced Micro Devices belongs to the Computer - Integrated Systems industry, a group that includes 9 individual stocks and currently sits at #77 in the Zacks Industry Rank. Stocks in this group have gained about 34.6% so far this year, so AMD is performing better this group in terms of year-to-date returns.
ADTRAN Holdings, however, belongs to the Communication - Components industry. Currently, this 13-stock industry is ranked #20. The industry has moved +101.4% so far this year.
Investors interested in the Computer and Technology sector may want to keep a close eye on Advanced Micro Devices and ADTRAN Holdings as they attempt to continue their solid performance.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpAdvanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
ADTRAN Holdings, Inc. (ADTN) : Free Stock Analysis Report
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.
