Are Computer and Technology Stocks Lagging Advantest (ATEYY) This Year?

Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Advantest Corp. (ATEYY) 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? 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.

Advantest Corp. is one of 606 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #1 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. Advantest Corp. is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for ATEYY's full-year earnings has moved 12.2% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, ATEYY has returned 21.2% so far this year. Meanwhile, the Computer and Technology sector has returned an average of -4.1% on a year-to-date basis. This shows that Advantest Corp. is outperforming its peers so far this year.

One other Computer and Technology stock that has outperformed the sector so far this year is Fastly (FSLY). The stock is up 159.8% year-to-date.

Over the past three months, Fastly's consensus EPS estimate for the current year has increased 23%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Advantest Corp. belongs to the Electronics - Measuring Instruments industry, a group that includes 5 individual stocks and currently sits at #33 in the Zacks Industry Rank. On average, this group has gained an average of 45.4% so far this year, meaning that ATEYY is slightly underperforming its industry in terms of year-to-date returns.

On the other hand, Fastly belongs to the Internet - Software industry. This 172-stock industry is currently ranked #149. The industry has moved -13.7% year to date.

Advantest Corp. and Fastly 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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This article originally published on Zacks Investment Research (zacks.com).

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