Is Applied Materials Outperforming Other Computer and Technology Stocks This Year?

For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Applied Materials AMAT 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.

Applied Materials is a member of the Computer and Technology sector. This group includes 618 individual stocks and currently holds a Zacks Sector Rank of #6. 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 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 earnings estimate revisions and favors companies with improving earnings outlooks. Applied Materials is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for AMAT's full-year earnings has moved 5.7% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, AMAT has moved about 21.9% on a year-to-date basis. Meanwhile, the Computer and Technology sector has returned an average of 7.3% on a year-to-date basis. As we can see, Applied Materials is performing better than its sector in the calendar year.

One other Computer and Technology stock that has outperformed the sector so far this year is D-Wave Quantum Inc. QBTS. The stock is up 68.2% year-to-date.

Over the past three months, D-Wave Quantum Inc.'s consensus EPS estimate for the current year has increased 35.7%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Applied Materials belongs to the Semiconductor Equipment - Wafer Fabrication industry, a group that includes 4 individual stocks and currently sits at #93 in the Zacks Industry Rank. On average, this group has gained an average of 19.3% so far this year, meaning that AMAT is performing better in terms of year-to-date returns.

D-Wave Quantum Inc. however, belongs to the Internet - Software industry. Currently, this 139-stock industry is ranked #62. The industry has moved +8.4% so far this year.

Applied Materials and D-Wave Quantum Inc. 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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