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Are Computer and Technology Stocks Lagging PagerDuty (PD) This Year?

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For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. PagerDuty (PD - 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? 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.

PagerDuty is a member of our Computer and Technology group, which includes 643 different companies and currently sits at #9 in the Zacks Sector Rank. 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 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. PagerDuty is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for PD's full-year earnings has moved 29.6% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, PD has returned 29.5% so far this year. In comparison, Computer and Technology companies have returned an average of 19.8%. As we can see, PagerDuty is performing better than its sector in the calendar year.

Another Computer and Technology stock, which has outperformed the sector so far this year, is SentinelOne (S - Free Report) . The stock has returned 22.5% year-to-date.

Over the past three months, SentinelOne's consensus EPS estimate for the current year has increased 25.6%. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, PagerDuty belongs to the Internet - Software industry, a group that includes 146 individual companies and currently sits at #58 in the Zacks Industry Rank. Stocks in this group have gained about 33.2% so far this year, so PD is slightly underperforming its industry this group in terms of year-to-date returns.

In contrast, SentinelOne falls under the Computers - IT Services industry. Currently, this industry has 40 stocks and is ranked #151. Since the beginning of the year, the industry has moved +5.2%.

Investors with an interest in Computer and Technology stocks should continue to track PagerDuty and SentinelOne. These stocks will be looking to continue their solid performance.


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