Jhe computer and technology group has many attractive stocks, but investors should always look for companies that are outperforming their peers. AXT (AXTI) is a stock that can certainly catch the eye of many investors, but do its recent returns compare favorably to those of the sector as a whole? Looking at the stock’s year-to-date performance against its IT and tech peers, we might be able to answer that question.
AXT is one of 662 individual stocks in the IT and technology sector. Collectively, these companies rank 10th in the Zacks industry rankings. The Zacks Sector Ranking assesses the strength of our 16 individual sector groups by measuring the average Zacks Ranking of individual stocks within the groups.
The Zacks Ranking is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes revisions to earnings estimates and favors companies with improving earnings prospects. AXT currently sports a Zacks rank of #2 (buy).
Over the past 90 days, the Zacks consensus estimate for AXTI’s full-year earnings rose 33.1%. This is a sign of improving analyst sentiment and a positive trend in the earnings outlook.
Based on the latest available data, AXTI has gained around 5.8% so far this year. At the same time, computer and technology stocks lost an average of 21.9%. This shows that AXT is outperforming its peers so far this year.
Bel Fuse (BELFB) is another IT and technology stock that has outperformed the sector so far this year. Since the start of the year, the stock has returned 87.9%.
Over the past three months, Bel Fuse’s consensus EPS estimate for the current year has increased by 43.6%. The stock currently has a Zacks #1 rank (Strong Buy).
Breaking down further, AXT is a member of the Electronics – Semiconductors industry, which comprises 43 individual companies and is currently ranked 148th in the Zacks industry rankings. On average, this group has lost an average of 21.8% so far this year, which means that AXTI is showing better results in terms of return since the beginning of the year.
On the other hand, Bel Fuse belongs to the Electronics – Miscellaneous Products industry. This 28-stock industry is currently ranked #188. The industry has evolved by -32.3% since the beginning of the year.
Investors interested in IT and technology stocks should continue to follow AXT and Bel Fuse. These stocks will look to continue their strong performance.
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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.