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Has Zscaler (ZS) Outpaced Other Computer and Technology Stocks This Year?

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Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. 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 a member of our Computer and Technology group, which includes 604 different companies and currently sits at #7 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. ZS is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for ZS's full-year earnings has moved 2.16% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that ZS has returned about 208.26% since the start of the calendar year. In comparison, Computer and Technology companies have returned an average of 15.32%. This means that Zscaler is outperforming the sector as a whole this year.

Breaking things down more, ZS is a member of the Internet - Services industry, which includes 47 individual companies and currently sits at #117 in the Zacks Industry Rank. Stocks in this group have gained about 28.18% so far this year, so ZS is performing better this group in terms of year-to-date returns.

Investors in the Computer and Technology sector will want to keep a close eye on ZS as it attempts to continue its solid performance.


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