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Is Allegro MicroSystems (ALGM) Stock Outpacing Its Computer and Technology Peers This Year?

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Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Has Allegro MicroSystems, Inc. (ALGM - Free Report) been one of those stocks this year? 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 637 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #7 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Allegro MicroSystems, Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for ALGM's full-year earnings has moved 8% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, ALGM has returned 45.6% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 36.5% on a year-to-date basis. As we can see, Allegro MicroSystems, Inc. is performing better than its sector in the calendar year.

One other Computer and Technology stock that has outperformed the sector so far this year is Fortinet (FTNT - Free Report) . The stock is up 52.7% year-to-date.

Over the past three months, Fortinet's consensus EPS estimate for the current year has increased 4.4%. 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 #178 in the Zacks Industry Rank. On average, stocks in this group have gained 47.6% this year, meaning that ALGM is slightly underperforming its industry in terms of year-to-date returns.

In contrast, Fortinet falls under the Internet - Software industry. Currently, this industry has 147 stocks and is ranked #70. Since the beginning of the year, the industry has moved +48.5%.

Investors with an interest in Computer and Technology stocks should continue to track Allegro MicroSystems, Inc. and Fortinet. These stocks will be looking to continue their solid performance.


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