Technology stocks

Is NeoPhotonics (NPTN) outperforming other IT and technology stocks this year?

Investors interested in IT and technology stocks should always look for the best performing companies in the group. Was NeoPhotonics (NPTN) one of those stocks this year? Let’s take a closer look at the stock’s year-to-date performance to find out.

NeoPhotonics is a member of the IT and Technology sector. This group comprises 664 individual stocks and currently holds a Zacks Sector Rank of #10. The Zacks Sector Ranking takes into account 16 different sector groups. The average Zacks ranking of individual stocks within groups is measured and sectors are listed from best to worst.

The Zacks Ranking is a successful stock selection model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. NeoPhotonics currently sports a Zacks rank of #2 (buy).

Over the past quarter, the Zacks consensus estimate for NPTN’s annual earnings has increased by 800%. That means analyst sentiment is stronger and the stock’s earnings outlook is improving.

According to our latest data, NPTN has moved about 0.3% since the beginning of the year. By comparison, IT and technology companies posted an average return of -29.8%. This means that NeoPhotonics outperforms the entire industry this year.

Another IT & Technology stock, Photronics (PLAB), has outperformed the sector so far this year. The return on the share since the beginning of the year is 10.6%.

For Photronics, the current-year EPS consensus estimate rose 27.2% over the past three months. The stock currently has a Zacks rank of No. 1 (Strong Buy).

Specifically, NeoPhotonics belongs to the Semiconductor – Communications industry, which comprises 3 individual stocks and is currently ranked 52nd in the Zacks industry rankings. Shares in this group have gained about 0.3% so far this year, so NPTN is on par with this group in terms of year-to-date returns.

On the other hand, Photronics belongs to the semiconductor equipment industry – photomasks. This 2 title industry is currently ranked #5. The industry has grown by +10.6% since the start of the year.

Investors interested in the IT and technology sector may want to keep a close eye on neophotonics and phototronics as they attempt to continue their strong performance.

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