Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Paycom Software (PAYC - 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.
Paycom Software is a member of the Computer and Technology sector. This group includes 654 individual stocks and currently holds a Zacks Sector Rank of #4. 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 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. PAYC is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for PAYC's full-year earnings has moved 1.54% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that PAYC has returned about 51.56% since the start of the calendar year. Meanwhile, the Computer and Technology sector has returned an average of -5.92% on a year-to-date basis. This means that Paycom Software is outperforming the sector as a whole this year.
To break things down more, PAYC belongs to the Internet - Software industry, a group that includes 89 individual companies and currently sits at #29 in the Zacks Industry Rank. Stocks in this group have gained about 3.70% so far this year, so PAYC is performing better this group in terms of year-to-date returns.
PAYC will likely be looking to continue its solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to the company.