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. AAC Technologies Holdings Inc. (AACAY) 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.
AAC Technologies Holdings Inc. is one of 611 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #6 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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. AAC Technologies Holdings Inc. is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for AACAY's full-year earnings has moved 10% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that AACAY has returned about 5.3% since the start of the calendar year. Meanwhile, stocks in the Computer and Technology group have lost about 20.9% on average. This means that AAC Technologies Holdings Inc. is performing better than its sector in terms of year-to-date returns.
Another Computer and Technology stock, which has outperformed the sector so far this year, is ACM Research, Inc. (ACMR). The stock has returned 34.4% year-to-date.
In ACM Research, Inc.'s case, the consensus EPS estimate for the current year increased 40.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, AAC Technologies Holdings Inc. belongs to the Electronics - Miscellaneous Components industry, which includes 26 individual stocks and currently sits at #153 in the Zacks Industry Rank. On average, stocks in this group have lost 21.6% this year, meaning that AACAY is performing better in terms of year-to-date returns.
On the other hand, ACM Research, Inc. belongs to the Semiconductor Equipment - Material Services industry. This 1-stock industry is currently ranked #1. The industry has moved +10.8% year to date.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to AAC Technologies Holdings Inc. and ACM Research, Inc. as they could maintain their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).
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