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Is Allegro MicroSystems (ALGM) Outperforming Other Computer and Technology Stocks This Year?

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Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Allegro MicroSystems, Inc. (ALGM - Free Report) 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.

Allegro MicroSystems, Inc. is a member of our Computer and Technology group, which includes 640 different companies and currently sits at #8 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. Allegro MicroSystems, Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for ALGM's full-year earnings has moved 8% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, ALGM has moved about 39.1% on a year-to-date basis. Meanwhile, stocks in the Computer and Technology group have gained about 37% on average. This means that Allegro MicroSystems, Inc. is performing better than its sector in terms of year-to-date returns.

Shopify (SHOP - Free Report) 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 85.1%.

For Shopify, the consensus EPS estimate for the current year has increased 66% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Allegro MicroSystems, Inc. belongs to the Electronics - Semiconductors industry, which includes 40 individual stocks and currently sits at #201 in the Zacks Industry Rank. On average, stocks in this group have gained 51.7% this year, meaning that ALGM is slightly underperforming its industry in terms of year-to-date returns.

In contrast, Shopify falls under the Internet - Services industry. Currently, this industry has 42 stocks and is ranked #56. Since the beginning of the year, the industry has moved +39.2%.

Allegro MicroSystems, Inc. and Shopify could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.


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