U.S. Markets closed

Is Mellanox Technologies (MLNX) Outperforming Other Computer and Technology Stocks This Year?

Zacks Equity Research
Actively managed, large-cap funds are more likely to outperform passive mutual funds in turbulent times.

Investors focused on the Computer and Technology space have likely heard of Mellanox Technologies (MLNX), but is the stock performing well in comparison to the rest of its sector peers? 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.

Mellanox Technologies is a member of the Computer and Technology sector. This group includes 642 individual stocks and currently holds a Zacks Sector Rank of #8. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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. MLNX is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for MLNX's full-year earnings has moved 5.47% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, MLNX has returned 27.78% so far this year. At the same time, Computer and Technology stocks have gained an average of 17.14%. This shows that Mellanox Technologies is outperforming its peers so far this year.

Breaking things down more, MLNX is a member of the Electronics - Semiconductors industry, which includes 38 individual companies and currently sits at #198 in the Zacks Industry Rank. On average, this group has gained an average of 19.31% so far this year, meaning that MLNX is performing better in terms of year-to-date returns.

Investors with an interest in Computer and Technology stocks should continue to track MLNX. The stock will be looking to continue its solid performance.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Mellanox Technologies, Ltd. (MLNX) : Free Stock Analysis Report
To read this article on Zacks.com click here.