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Is Zscaler (ZS) Outperforming Other Computer and Technology Stocks This Year?

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The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Zscaler (ZS - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? One simple way to answer this question is to take a look at the year-to-date performance of ZS and the rest of the Computer and Technology group's stocks.

Zscaler 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 considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

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. ZS is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for ZS's full-year earnings has moved 3.38% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, ZS has moved about 158.73% on a year-to-date basis. At the same time, Computer and Technology stocks have gained an average of 15.28%. This means that Zscaler is outperforming the sector as a whole this year.

To break things down more, ZS belongs to the Internet - Services industry, a group that includes 47 individual companies and currently sits at #158 in the Zacks Industry Rank. On average, stocks in this group have gained 16.25% this year, meaning that ZS is performing better in terms of year-to-date returns.

Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to ZS as it looks to continue its solid performance.


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