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. Mellanox Technologies 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? One simple way to answer this question is to take a look at the year-to-date performance of MLNX and the rest of the Computer and Technology group's stocks.
Mellanox Technologies is one of 630 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 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. MLNX is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for MLNX's full-year earnings has moved 7.12% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that MLNX has returned about 3.47% since the start of the calendar year. At the same time, Computer and Technology stocks have gained an average of 3%. This means that Mellanox Technologies is performing better than its sector in terms of year-to-date returns.
Looking more specifically, MLNX belongs to the Electronics - Semiconductors industry, a group that includes 37 individual stocks and currently sits at #31 in the Zacks Industry Rank. On average, stocks in this group have lost 3.89% this year, meaning that MLNX is performing better in terms of year-to-date returns.
MLNX will likely be looking to continue its solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to the company.