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Has AXT (AXTI) Outpaced Other Computer and Technology Stocks This Year?

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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 AXT (AXTI - Free Report) 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.

AXT is one of 618 companies in the Computer and Technology group. The Computer and Technology group currently sits at #5 within 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 is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. AXT is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for AXTI's full-year earnings has moved 50% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, AXTI has returned 106.3% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 13.5% on average. This shows that AXT is outperforming its peers so far this year.

D-Wave Quantum Inc. (QBTS - 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 123.8%.

The consensus estimate for D-Wave Quantum Inc.'s current year EPS has increased 35.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, AXT belongs to the Electronics - Semiconductors industry, a group that includes 41 individual companies and currently sits at #192 in the Zacks Industry Rank. On average, stocks in this group have gained 18.4% this year, meaning that AXTI is performing better in terms of year-to-date returns.

D-Wave Quantum Inc. however, belongs to the Internet - Software industry. Currently, this 139-stock industry is ranked #35. The industry has moved +18.9% so far this year.

Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to AXT and D-Wave Quantum Inc. as they could maintain their solid performance.


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