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Is Applied Materials (AMAT) Outperforming Other Computer and Technology Stocks This Year?

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The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Applied Materials (AMAT - Free Report) 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? One simple way to answer this question is to take a look at the year-to-date performance of AMAT and the rest of the Computer and Technology group's stocks.

Applied Materials is a member of our Computer and Technology group, which includes 630 different companies and currently sits at #14 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 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. AMAT is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for AMAT's full-year earnings has moved 9.48% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that AMAT has returned about 57.93% since the start of the calendar year. Meanwhile, the Computer and Technology sector has returned an average of 20.67% on a year-to-date basis. This means that Applied Materials is performing better than its sector in terms of year-to-date returns.

Breaking things down more, AMAT is a member of the Semiconductor Equipment - Wafer Fabrication industry, which includes 4 individual companies and currently sits at #68 in the Zacks Industry Rank. This group has gained an average of 45.32% so far this year, so AMAT is performing better in this area.

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


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