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Is Alpha and Omega Semiconductor (AOSL) Stock Outpacing Its Computer and Technology Peers 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. Alpha and Omega Semiconductor (AOSL - 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? 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.

Alpha and Omega Semiconductor is one of 648 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #7 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 proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Alpha and Omega Semiconductor is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for AOSL's full-year earnings has moved 24.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, AOSL has returned 107.8% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 24.6% on average. As we can see, Alpha and Omega Semiconductor is performing better than its sector in the calendar year.

Another stock in the Computer and Technology sector, Alphabet (GOOGL - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 61.9%.

Over the past three months, Alphabet's consensus EPS estimate for the current year has increased 6.3%. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Alpha and Omega Semiconductor belongs to the Electronics - Semiconductors industry, a group that includes 40 individual companies and currently sits at #40 in the Zacks Industry Rank. On average, this group has gained an average of 38.1% so far this year, meaning that AOSL is performing better in terms of year-to-date returns.

In contrast, Alphabet falls under the Internet - Services industry. Currently, this industry has 49 stocks and is ranked #174. Since the beginning of the year, the industry has moved +38.2%.

Alpha and Omega Semiconductor and Alphabet 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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