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Are Computer and Technology Stocks Lagging Applied Materials (AMAT) 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. Is Applied Materials (AMAT - Free Report) one of those stocks right now? 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.

Applied Materials is one of 618 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #7 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 is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Applied Materials is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for AMAT's full-year earnings has moved 3.4% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, AMAT has moved about 30.9% on a year-to-date basis. At the same time, Computer and Technology stocks have gained an average of 21.1%. This means that Applied Materials is outperforming the sector as a whole this year.

Another Computer and Technology stock, which has outperformed the sector so far this year, is RF Industries, Ltd. (RFIL - Free Report) . The stock has returned 37.2% year-to-date.

Over the past three months, RF Industries, Ltd.'s consensus EPS estimate for the current year has increased 100%. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Applied Materials belongs to the Semiconductor Equipment - Wafer Fabrication industry, a group that includes 4 individual companies and currently sits at #101 in the Zacks Industry Rank. On average, stocks in this group have gained 24.8% this year, meaning that AMAT is performing better in terms of year-to-date returns.

RF Industries, Ltd. however, belongs to the Semiconductors - Radio Frequency industry. Currently, this 4-stock industry is ranked #56. The industry has moved -2.8% so far this year.

Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Applied Materials and RF Industries, Ltd. as they could maintain their solid performance.


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