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. Has ASE Technology Hldg (ASX) been one of those stocks this year? 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.
ASE Technology Hldg is a member of the Computer and Technology sector. This group includes 614 individual stocks and currently holds a Zacks Sector Rank of #3. 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 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. ASE Technology Hldg is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for ASX's full-year earnings has moved 15.2% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, ASX has gained about 140.1% so far this year. At the same time, Computer and Technology stocks have gained an average of 16.8%. This shows that ASE Technology Hldg is outperforming its peers so far this year.
Astera Labs, Inc. (ALAB) 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 87.5%.
In Astera Labs, Inc.'s case, the consensus EPS estimate for the current year increased 43.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, ASE Technology Hldg belongs to the Electronics - Semiconductors industry, a group that includes 49 individual stocks and currently sits at #43 in the Zacks Industry Rank. On average, this group has gained an average of 31% so far this year, meaning that ASX is performing better in terms of year-to-date returns.
In contrast, Astera Labs, Inc. falls under the Internet - Software industry. Currently, this industry has 174 stocks and is ranked #94. Since the beginning of the year, the industry has moved -1.4%.
Investors with an interest in Computer and Technology stocks should continue to track ASE Technology Hldg and Astera Labs, Inc.. These stocks will be looking 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.
