Has NeoPhotonics (NPTN) Outpaced 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. Is NeoPhotonics (NPTN) one of those stocks right now? 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.

NeoPhotonics is one of 663 companies in the Computer and Technology group. The Computer and Technology group currently sits at #8 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

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. NeoPhotonics is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for NPTN’s full-year earnings has moved 50% higher. This signals that analyst sentiment is improving and the stock’s earnings outlook is more positive.

Our latest available data shows that NPTN has returned about 1% since the start of the calendar year. In comparison, Computer and Technology companies have returned an average of -23.8%. This means that NeoPhotonics is outperforming the sector as a whole this year.

Another Computer and Technology stock, which has outperformed the sector so far this year, is Photronics (PLAB). The stock has returned 12.3% year-to-date.

In Photronics’ case, the consensus EPS estimate for the current year increased 15.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, NeoPhotonics is a member of the Semiconductor – Communications industry, which includes 3 individual companies and currently sits at #55 in the Zacks Industry Rank. This group has gained an average of 1% so far this year, so NPTN is performing on par in this area.

Photronics, however, belongs to the Semiconductor Equipment – Photomasks industry. Currently, this 2-stock industry is ranked #5. The industry has moved +12.3% so far this year.

Investors with an interest in Computer and Technology stocks should continue to track NeoPhotonics and Photronics. These stocks will be looking to continue their solid performance.

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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.

This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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