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Is Astera Labs, Inc. (ALAB) Stock Outpacing Its Computer and Technology Peers This Year?

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For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Astera Labs, Inc. (ALAB - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.

Astera Labs, Inc. is one of 605 companies in the Computer and Technology group. The Computer and Technology group currently sits at #6 within 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 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. Astera Labs, Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for ALAB's full-year earnings has moved 67.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, ALAB has moved about 42.8% on a year-to-date basis. Meanwhile, the Computer and Technology sector has returned an average of 14.4% on a year-to-date basis. This means that Astera Labs, Inc. is outperforming the sector as a whole this year.

Gilat Satellite (GILT - 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 55.5%.

In Gilat Satellite's case, the consensus EPS estimate for the current year increased 78.8% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Astera Labs, Inc. is a member of the Internet - Software industry, which includes 173 individual companies and currently sits at #68 in the Zacks Industry Rank. On average, this group has gained an average of 20.5% so far this year, meaning that ALAB is performing better in terms of year-to-date returns.

Gilat Satellite, however, belongs to the Satellite and Communication industry. Currently, this 7-stock industry is ranked #15. The industry has moved +62.9% so far this year.

Astera Labs, Inc. and Gilat Satellite 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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