Yahoo Finance Are Computer and Technology Stocks Lagging Applied Optoelectronics (AAOI) 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. Has Applied Optoelectronics (AAOI) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Applied Optoelectronics is one of 646 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #6 in the Zacks Sector Rank. 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. 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 35.9% 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 31.2% so far this year. At the same time, Computer and Technology stocks have gained an average of 15.7%. This shows that Applied Optoelectronics is outperforming its peers so far this year.
Allegro MicroSystems, Inc. (ALGM) 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 53.3%.
For Allegro MicroSystems, Inc. the consensus EPS estimate for the current year has increased 10.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Applied Optoelectronics is a member of the Electronics - Semiconductors industry, which includes 39 individual companies and currently sits at #147 in the Zacks Industry Rank. This group has gained an average of 24.3% so far this year, so AAOI is performing better in this area. Allegro MicroSystems, Inc. is also part of the same industry.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Applied Optoelectronics and Allegro MicroSystems, Inc. as they could maintain their solid performance.
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Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report
Allegro MicroSystems, Inc. (ALGM) : Free Stock Analysis Report
