The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Amphenol (APH) 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? 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.
Amphenol is a member of our Computer and Technology group, which includes 603 different companies and currently sits at #6 in the Zacks Sector Rank. 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 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. Amphenol is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for APH's full-year earnings has moved 9.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, APH has gained about 0.1% so far this year. Meanwhile, stocks in the Computer and Technology group have lost about 5.6% on average. This shows that Amphenol is outperforming its peers so far this year.
One other Computer and Technology stock that has outperformed the sector so far this year is Anterix (ATEX). The stock is up 21.8% year-to-date.
Over the past three months, Anterix's consensus EPS estimate for the current year has increased 42.2%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Amphenol is a member of the Electronics - Connectors industry, which includes 2 individual companies and currently sits at #4 in the Zacks Industry Rank. This group has lost an average of 0.2% so far this year, so APH is performing better in this area.
In contrast, Anterix falls under the Communication - Infrastructure industry. Currently, this industry has 4 stocks and is ranked #3. Since the beginning of the year, the industry has moved +31.9%.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Amphenol and Anterix 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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