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Are Computer and Technology Stocks Lagging Richardson Electronics (RELL) This Year?

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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. Richardson Electronics (RELL - 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.

Richardson Electronics is one of 654 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #6 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

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. Richardson Electronics is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for RELL's full-year earnings has moved 22.4% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that RELL has returned about 81.3% since the start of the calendar year. Meanwhile, the Computer and Technology sector has returned an average of -34.1% on a year-to-date basis. This shows that Richardson Electronics is outperforming its peers so far this year.

Another Computer and Technology stock, which has outperformed the sector so far this year, is Sigma Lithium Corporation (SGML - Free Report) . The stock has returned 186.6% year-to-date.

Over the past three months, Sigma Lithium Corporation's consensus EPS estimate for the current year has increased 4.4%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Richardson Electronics belongs to the Electronics - Parts Distribution industry, a group that includes 4 individual stocks and currently sits at #44 in the Zacks Industry Rank. On average, stocks in this group have lost 10.9% this year, meaning that RELL is performing better in terms of year-to-date returns.

Sigma Lithium Corporation, however, belongs to the Electronics - Miscellaneous Products industry. Currently, this 27-stock industry is ranked #140. The industry has moved -38.1% so far this year.

Investors with an interest in Computer and Technology stocks should continue to track Richardson Electronics and Sigma Lithium Corporation. These stocks will be looking to continue their solid performance.


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