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 Axcelis Technologies (ACLS) 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.
Axcelis Technologies is a member of our Computer and Technology group, which includes 647 different companies and currently sits 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 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. Axcelis Technologies is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for ACLS’ full-year earnings has moved 8.8% higher within the past quarter. This means that analyst sentiment is stronger and the stock’s earnings outlook is improving.
Based on the latest available data, ACLS has gained about 114.8% so far this year. In comparison, Computer and Technology companies have returned an average of 30%. This means that Axcelis Technologies is outperforming the sector as a whole this year.
One other Computer and Technology stock that has outperformed the sector so far this year is Arista Networks (ANET). The stock is up 77.5% year-to-date.
In Arista Networks’ case, the consensus EPS estimate for the current year increased 2.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Axcelis Technologies belongs to the Electronics – Manufacturing Machinery industry, a group that includes 11 individual stocks and currently sits at #37 in the Zacks Industry Rank. On average, this group has gained an average of 46.5% so far this year, meaning that ACLS is performing better in terms of year-to-date returns.
On the other hand, Arista Networks belongs to the Communication – Components industry. This 17-stock industry is currently ranked #182. The industry has moved -23.1% year to date.
Investors interested in the Computer and Technology sector may want to keep a close eye on Axcelis Technologies and Arista Networks as they attempt to continue their solid performance.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.