Investors interested in IT and technology stocks should always look for the best performing companies in the cluster. East AU Optronics (AUOTY – Free report) one of these stocks right now? Looking at the stock’s year-to-date performance against its IT and technology peers, we might be able to answer that question.
AU Optronics is a member of our IT and Technology group, which includes 653 different companies and is currently ranked 4th 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 Rankings is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that display the right characteristics to beat the market over the next one to three months. AU Optronics currently sports a Zacks rank of #2 (buy).
Over the past 90 days, the Zacks consensus estimate for AUOTY’s annual revenue has increased by 0.6%. This shows that analyst sentiment has improved and the company’s earnings outlook is stronger.
Based on the most recent data, AUOTY has returned 12% so far this year. By comparison, IT and technology companies posted an average return of -28.3%. As we can see, AU Optronics is outperforming its industry over the calendar year.
Arista Networks is another IT and technology stock that has outperformed the sector so far this year (sides – free report). The stock has returned 0.4% year-to-date.
Over the past three months, Arista Networks consensus EPS estimate for the current year has increased by 12.4%. The stock currently has a Zacks #2 (buy) rank.
Specifically, AU Optronics belongs to the Electronics – Miscellaneous Components industry, which comprises 28 individual stocks and currently sits at #148 in the Zacks Industry Rank. On average, stocks in this group have lost 23.4% this year, which means that AUOTY has performed better in terms of return since the beginning of the year.
On the other hand, Arista Networks belongs to the Communication – Components industry. This 15-stock industry is currently ranked #92. The industry is up -16.5% year-to-date.
AU Optronics and Arista Networks may continue their strong performance, so investors interested in IT and technology stocks should continue to pay close attention to these stocks.