May 21, 2024


Super Technology

Is Allegro MicroSystems, Inc. (ALGM) Outperforming Other Computer and Technology Stocks This Year?

The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Allegro MicroSystems, Inc. (ALGM) 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.

Allegro MicroSystems, Inc. is one of 647 companies in the Computer and Technology group. The Computer and Technology group currently sits at #10 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 is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Allegro MicroSystems, Inc. is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for ALGM’s full-year earnings has moved 5.5% higher within the past quarter. This means that analyst sentiment is stronger and the stock’s earnings outlook is improving.

Based on the most recent data, ALGM has returned 26.1% so far this year. At the same time, Computer and Technology stocks have gained an average of 25.1%. This shows that Allegro MicroSystems, Inc. is outperforming its peers so far this year.

Another Computer and Technology stock, which has outperformed the sector so far this year, is KLA (KLAC). The stock has returned 54.4% year-to-date.

For KLA, the consensus EPS estimate for the current year has increased 9.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Allegro MicroSystems, Inc. belongs to the Electronics – Semiconductors industry, a group that includes 40 individual stocks and currently sits at #55 in the Zacks Industry Rank. Stocks in this group have gained about 36.9% so far this year, so ALGM is slightly underperforming its industry this group in terms of year-to-date returns.

On the other hand, KLA belongs to the Electronics – Miscellaneous Products industry. This 23-stock industry is currently ranked #96. The industry has moved +18.3% year to date.

Investors interested in the Computer and Technology sector may want to keep a close eye on Allegro MicroSystems, Inc. and KLA as they attempt to continue their solid performance.

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