Investors focused on the Computer and Technology space have likely heard of Microchip Technology (MCHP), but is the stock performing well in comparison to the rest of its sector peers? 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.
Microchip Technology is one of 606 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #10 in the Zacks Sector Rank. 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 successful stock-picking 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. MCHP is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for MCHP’s full-year earnings has moved 12.48{cb3fe4c54de06d7c4b8dceae281fb32e521027d1659af7adec2f427d2f5333d9} higher. This signals that analyst sentiment is improving and the stock’s earnings outlook is more positive.
Based on the latest available data, MCHP has gained about 3.02{cb3fe4c54de06d7c4b8dceae281fb32e521027d1659af7adec2f427d2f5333d9} so far this year. At the same time, Computer and Technology stocks have gained an average of 15.54{cb3fe4c54de06d7c4b8dceae281fb32e521027d1659af7adec2f427d2f5333d9}. This means that Microchip Technology is performing better than its sector in terms of year-to-date returns.
Looking more specifically, MCHP belongs to the Semiconductor – Analog and Mixed industry, a group that includes 12 individual stocks and currently sits at #26 in the Zacks Industry Rank. On average, this group has gained an average of 4.72{cb3fe4c54de06d7c4b8dceae281fb32e521027d1659af7adec2f427d2f5333d9} so far this year, meaning that MCHP is slightly underperforming its industry in terms of year-to-date returns.
Investors in the Computer and Technology sector will want to keep a close eye on MCHP as it attempts to continue its solid performance.
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