The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. PayPal Holdings (PYPL - 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 PYPL and the rest of the Computer and Technology group's stocks.
PayPal Holdings is a member of our Computer and Technology group, which includes 594 different companies and currently sits at #4 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. PYPL is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for PYPL's full-year earnings has moved 3.12% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, PYPL has gained about 13.24% so far this year. In comparison, Computer and Technology companies have returned an average of 0.43%. This means that PayPal Holdings is outperforming the sector as a whole this year.
Breaking things down more, PYPL is a member of the Internet - Software industry, which includes 75 individual companies and currently sits at #50 in the Zacks Industry Rank. Stocks in this group have gained about 4.70% so far this year, so PYPL 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 PYPL as it attempts to continue its solid performance.