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Has Analog Devices (ADI) Outpaced Other Computer and Technology Stocks 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. Analog Devices (ADI - 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? Let's take a closer look at the stock's year-to-date performance to find out.

Analog Devices is a member of our Computer and Technology group, which includes 607 different companies and currently sits at #7 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 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. Analog Devices is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for ADI's full-year earnings has moved 2.8% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, ADI has moved about 2.1% on a year-to-date basis. In comparison, Computer and Technology companies have returned an average of -1.3%. This means that Analog Devices is performing better than its sector in terms of year-to-date returns.

Another stock in the Computer and Technology sector, American Superconductor (AMSC - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 11.2%.

The consensus estimate for American Superconductor's current year EPS has increased 2.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Analog Devices belongs to the Semiconductor - Analog and Mixed industry, a group that includes 10 individual stocks and currently sits at #90 in the Zacks Industry Rank. This group has lost an average of 2.7% so far this year, so ADI is performing better in this area.

On the other hand, American Superconductor belongs to the Electronics - Miscellaneous Components industry. This 26-stock industry is currently ranked #81. The industry has moved +1.1% year to date.

Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Analog Devices and American Superconductor as they could maintain their solid performance.


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