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. United Microelectronics (UMC) 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 UMC and the rest of the Computer and Technology group’s stocks.
United Microelectronics is a member of our Computer and Technology group, which includes 647 different companies and currently sits at #7 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 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. UMC is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for UMC’s full-year earnings has moved 14.89% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, UMC has moved about 32.62% on a year-to-date basis. In comparison, Computer and Technology companies have returned an average of 29.10%. This means that United Microelectronics is performing better than its sector in terms of year-to-date returns.
Looking more specifically, UMC belongs to the Electronics – Semiconductors industry, which includes 40 individual stocks and currently sits at #49 in the Zacks Industry Rank. On average, stocks in this group have gained 36.93% this year, meaning that UMC is slightly underperforming its industry in terms of year-to-date returns.
Investors with an interest in Computer and Technology stocks should continue to track UMC. The stock will be looking to continue its solid performance.