You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Allegro MicroSystems (ALGM) Stock Outpacing Its Computer and Technology Peers This Year?
The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Allegro MicroSystems, Inc. (ALGM - Free Report) 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.
Allegro MicroSystems, Inc. is one of 652 companies in the Computer and Technology group. The Computer and Technology group currently sits at #5 within 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. Allegro MicroSystems, Inc. is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for ALGM's full-year earnings has moved 10.7% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that ALGM has returned about 10.9% since the start of the calendar year. In comparison, Computer and Technology companies have returned an average of -28.6%. This means that Allegro MicroSystems, Inc. is outperforming the sector as a whole this year.
One other Computer and Technology stock that has outperformed the sector so far this year is Amer Movil (AMX - Free Report) . The stock is up 16.1% year-to-date.
Over the past three months, Amer Movil's consensus EPS estimate for the current year has increased 4.5%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Allegro MicroSystems, Inc. belongs to the Electronics - Semiconductors industry, which includes 41 individual stocks and currently sits at #164 in the Zacks Industry Rank. On average, this group has lost an average of 20.7% so far this year, meaning that ALGM is performing better in terms of year-to-date returns.
In contrast, Amer Movil falls under the Wireless Non-US industry. Currently, this industry has 14 stocks and is ranked #8. Since the beginning of the year, the industry has moved -5.1%.
Investors with an interest in Computer and Technology stocks should continue to track Allegro MicroSystems, Inc. and Amer Movil. These stocks will be looking to continue their solid performance.