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Is STMicroelectronics N.V. (STM) Outperforming Other Computer and Technology Stocks This Year?

Zacks Equity Research

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

STMicroelectronics N.V. is one of 641 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #6 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. STM is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for STM's full-year earnings has moved 3.09% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, STM has gained about 32.21% so far this year. In comparison, Computer and Technology companies have returned an average of 23.04%. This means that STMicroelectronics N.V. is outperforming the sector as a whole this year.

Looking more specifically, STM belongs to the Semiconductor - General industry, a group that includes 8 individual stocks and currently sits at #43 in the Zacks Industry Rank. Stocks in this group have gained about 18.67% so far this year, so STM is performing better this group in terms of year-to-date returns.

STM will likely be looking to continue its solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to the company.


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