Are Computer and Technology Stocks Lagging Applied Optoelectronics (AAOI) 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 one of 633 companies in the Computer and Technology group. The Computer and Technology group currently sits at #8 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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. Applied Optoelectronics is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for AAOI's full-year earnings has moved 28.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, AAOI has returned 483.1% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 33.4% on a year-to-date basis. As we can see, Applied Optoelectronics is performing better than its sector in the calendar year.
Badger Meter (BMI) 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 42.6%.
For Badger Meter, the consensus EPS estimate for the current year has increased 5.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Applied Optoelectronics is a member of the Electronics - Semiconductors industry, which includes 41 individual companies and currently sits at #191 in the Zacks Industry Rank. This group has gained an average of 39.6% so far this year, so AAOI is performing better in this area.
On the other hand, Badger Meter belongs to the Instruments - Control industry. This 7-stock industry is currently ranked #7. The industry has moved +20.5% year to date.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Applied Optoelectronics and Badger Meter as they could maintain their solid performance.
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Applied Optoelectronics, Inc. (AAOI) : Free Stock Analysis Report
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