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Is KLA-Tencor (KLAC) Stock Outpacing Its Computer and Technology Peers 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 KLA-Tencor (KLAC - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.

KLA-Tencor is one of 626 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #3 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. KLAC is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for KLAC's full-year earnings has moved 4.66% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that KLAC has returned about 7.82% since the start of the calendar year. At the same time, Computer and Technology stocks have gained an average of 10.07%. This shows that KLA-Tencor is outperforming its peers so far this year.

Breaking things down more, KLAC is a member of the Semiconductor Equipment - Wafer Fabrication industry, which includes 5 individual companies and currently sits at #36 in the Zacks Industry Rank. On average, this group has gained an average of 4.37% so far this year, meaning that KLAC is performing better in terms of year-to-date returns.

KLAC will likely be looking to continue its solid performance, so investors interested Computer and Technology stocks should continue to pay close attention to the company.


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