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Is KLA (KLAC) 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. Is KLA (KLAC - 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.

KLA is one of 625 companies in the Computer and Technology group. The Computer and Technology group currently sits at #3 within 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 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. KLA is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for KLAC's full-year earnings has moved 5.6% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, KLAC has gained about 47.9% so far this year. At the same time, Computer and Technology stocks have gained an average of 47.2%. This shows that KLA is outperforming its peers so far this year.

Another stock in the Computer and Technology sector, Microsoft (MSFT - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 57.4%.

The consensus estimate for Microsoft's current year EPS has increased 2.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, KLA belongs to the Electronics - Miscellaneous Products industry, a group that includes 34 individual stocks and currently sits at #157 in the Zacks Industry Rank. On average, this group has gained an average of 21.6% so far this year, meaning that KLAC is performing better in terms of year-to-date returns.

In contrast, Microsoft falls under the Computer - Software industry. Currently, this industry has 37 stocks and is ranked #46. Since the beginning of the year, the industry has moved +55.4%.

KLA and Microsoft 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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