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Are Computer and Technology Stocks Lagging Allegro MicroSystems (ALGM) 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. Is Allegro MicroSystems, Inc. (ALGM) 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.

Allegro MicroSystems, Inc. is a member of the Computer and Technology sector. This group includes 641 individual stocks and currently holds a Zacks Sector Rank of #13. 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 system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Allegro MicroSystems, Inc. is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for ALGM's full-year earnings has moved 1% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, ALGM has returned 26.4% so far this year. In comparison, Computer and Technology companies have returned an average of 23%. This shows that Allegro MicroSystems, Inc. is outperforming its peers so far this year.

SentinelOne (S) is another Computer and Technology stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 25.2%.

In SentinelOne's case, the consensus EPS estimate for the current year increased 22.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Allegro MicroSystems, Inc. belongs to the Electronics - Semiconductors industry, a group that includes 40 individual stocks and currently sits at #169 in the Zacks Industry Rank. Stocks in this group have gained about 20.8% so far this year, so ALGM is performing better this group in terms of year-to-date returns.

In contrast, SentinelOne falls under the Computers - IT Services industry. Currently, this industry has 40 stocks and is ranked #165. Since the beginning of the year, the industry has moved +1.9%.

Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Allegro MicroSystems, Inc. and SentinelOne as they could maintain their solid performance.

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SentinelOne, Inc. (S) : Free Stock Analysis Report

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