The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Diodes (DIOD) one of those stocks right now? By taking a look at the stock’s year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.
Diodes is a member of the Computer and Technology sector. This group includes 646 individual stocks and currently holds a Zacks Sector Rank of #9. 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. Diodes is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for DIOD’s full-year earnings has moved 6.4% higher. This shows that analyst sentiment has improved and the company’s earnings outlook is stronger.
According to our latest data, DIOD has moved about 54.5% on a year-to-date basis. Meanwhile, stocks in the Computer and Technology group have gained about 26.9% on average. This shows that Diodes is outperforming its peers so far this year.
Another stock in the Computer and Technology sector, Monolithic Power (MPWR), has outperformed the sector so far this year. The stock’s year-to-date return is 34.2%.
Over the past three months, Monolithic Power’s consensus EPS estimate for the current year has increased 2.5%. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Diodes belongs to the Electronics – Semiconductors industry, a group that includes 40 individual companies and currently sits at #60 in the Zacks Industry Rank. Stocks in this group have gained about 47.2% so far this year, so DIOD is performing better this group in terms of year-to-date returns.
On the other hand, Monolithic Power belongs to the Semiconductor – Analog and Mixed industry. This 10-stock industry is currently ranked #23. The industry has moved +35.5% year to date.
Diodes and Monolithic Power could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.
Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?
From inception in 2012 through November, the Zacks Top 10 Stocks gained an impressive +962.5% versus the S&P 500’s +329.4%. Now our Director of Research is combing through 4,000 companies covered by the Zacks Rank to handpick the best 10 tickers to buy and hold. Don’t miss your chance to get in on these stocks when they’re released on January 3.
Be First To New Top 10 Stocks >>
Diodes Incorporated (DIOD): Free Stock Analysis Report
Monolithic Power Systems, Inc. (MPWR): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.