Is Applied Optoelectronics (AAOI) Outperforming Other Computer and Technology Stocks This Year?
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. Applied Optoelectronics (AAOI) 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? 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.
Applied Optoelectronics is a member of the Computer and Technology sector. This group includes 631 individual stocks and currently holds a Zacks Sector Rank of #11. 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 Optoelectronics is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for AAOI's full-year earnings has moved 28.6% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, AAOI has returned 543.4% so far this year. At the same time, Computer and Technology stocks have gained an average of 36.1%. This means that Applied Optoelectronics is outperforming the sector as a whole this year.
Another stock in the Computer and Technology sector, Airbnb, Inc. (ABNB), has outperformed the sector so far this year. The stock's year-to-date return is 61.3%.
In Airbnb, Inc.'s case, the consensus EPS estimate for the current year increased 7.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Applied Optoelectronics belongs to the Electronics - Semiconductors industry, which includes 41 individual stocks and currently sits at #96 in the Zacks Industry Rank. On average, stocks in this group have gained 45.5% this year, meaning that AAOI is performing better in terms of year-to-date returns.
On the other hand, Airbnb, Inc. belongs to the Internet - Content industry. This 16-stock industry is currently ranked #92. The industry has moved +30.2% year to date.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Applied Optoelectronics and Airbnb, Inc. as they could maintain their solid performance.
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Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report
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