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Are Computer and Technology Stocks Lagging Allegro MicroSystems (ALGM) 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. 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? 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.

Allegro MicroSystems, Inc. is a member of the Computer and Technology sector. This group includes 605 individual stocks and currently holds a Zacks Sector Rank of #6. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

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. Allegro MicroSystems, Inc. is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for ALGM's full-year earnings has moved 6.7% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that ALGM has returned about 40.5% since the start of the calendar year. At the same time, Computer and Technology stocks have gained an average of 12.7%. This means that Allegro MicroSystems, Inc. is outperforming the sector as a whole this year.

Another Computer and Technology stock, which has outperformed the sector so far this year, is Axcelis Technologies (ACLS - Free Report) . The stock has returned 13.8% year-to-date.

Over the past three months, Axcelis Technologies' consensus EPS estimate for the current year has increased 20%. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Allegro MicroSystems, Inc. is a member of the Electronics - Semiconductors industry, which includes 44 individual companies and currently sits at #165 in the Zacks Industry Rank. On average, this group has gained an average of 19% so far this year, meaning that ALGM is performing better in terms of year-to-date returns.

On the other hand, Axcelis Technologies belongs to the Electronics - Manufacturing Machinery industry. This 7-stock industry is currently ranked #98. The industry has moved -22.4% year to date.

Investors with an interest in Computer and Technology stocks should continue to track Allegro MicroSystems, Inc. and Axcelis Technologies. These stocks will be looking to continue their solid performance.


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