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. Is Axcelis Technologies (ACLS) one of those stocks right now? 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.
Axcelis Technologies is a member of our Computer and Technology group, which includes 647 different companies and currently sits at #8 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Axcelis Technologies is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for ACLS’ full-year earnings has moved 8.8% higher. This shows that analyst sentiment has improved and the company’s earnings outlook is stronger.
According to our latest data, ACLS has moved about 136% on a year-to-date basis. Meanwhile, stocks in the Computer and Technology group have gained about 26.5% on average. This shows that Axcelis Technologies is outperforming its peers so far this year.
Another stock in the Computer and Technology sector, Broadcom Inc. (AVGO), has outperformed the sector so far this year. The stock’s year-to-date return is 34.8%.
Over the past three months, Broadcom Inc.’s consensus EPS estimate for the current year has increased 0.4%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Axcelis Technologies belongs to the Electronics – Manufacturing Machinery industry, which includes 11 individual stocks and currently sits at #28 in the Zacks Industry Rank. On average, stocks in this group have gained 40.8% this year, meaning that ACLS is performing better in terms of year-to-date returns.
Broadcom Inc. however, belongs to the Electronics – Semiconductors industry. Currently, this 40-stock industry is ranked #48. The industry has moved +40.2% so far this year.
Axcelis Technologies and Broadcom Inc. could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.
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