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Are Computer and Technology Stocks Lagging KLA (KLAC) 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 KLA (KLAC - 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.

KLA is one of 624 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #5 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 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).

Over the past three months, the Zacks Consensus Estimate for KLAC's full-year earnings has moved 5.6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, KLAC has returned 48.3% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 48% on average. This shows that KLA is outperforming its peers so far this year.

Manhattan Associates (MANH - Free Report) is another Computer and Technology stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 83.4%.

The consensus estimate for Manhattan Associates' current year EPS has increased 17.7% 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, which includes 35 individual stocks and currently sits at #163 in the Zacks Industry Rank. On average, stocks in this group have gained 19.1% this year, meaning that KLAC is performing better in terms of year-to-date returns.

On the other hand, Manhattan Associates belongs to the Computer - Software industry. This 36-stock industry is currently ranked #80. The industry has moved +56.1% year to date.

KLA and Manhattan Associates 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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