August 18, 2022

GWSM-Tech

Digitally Yours

Is Photronics (PLAB) Stock Outpacing Its Computer and Technology Peers This Year?

The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Photronics (PLAB) been one of those stocks this year? 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.

Photronics is a member of the Computer and Technology sector. This group includes 667 individual stocks and currently holds a Zacks Sector Rank of #11. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Photronics is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for PLAB’s full-year earnings has moved 25.8% 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, PLAB has moved about 0.9% on a year-to-date basis. Meanwhile, the Computer and Technology sector has returned an average of -14% on a year-to-date basis. This shows that Photronics is outperforming its peers so far this year.

One other Computer and Technology stock that has outperformed the sector so far this year is Sierra Wireless (SWIR). The stock is up 2.6% year-to-date.

In Sierra Wireless’ case, the consensus EPS estimate for the current year increased 7.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Photronics belongs to the Semiconductor Equipment – Photomasks industry, a group that includes 2 individual companies and currently sits at #36 in the Zacks Industry Rank. This group has gained an average of 0.9% so far this year, so PLAB is performing on par in this area.

Sierra Wireless, however, belongs to the Wireless Equipment industry. Currently, this 16-stock industry is ranked #78. The industry has moved -10.9% so far this year.

Photronics and Sierra Wireless 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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