The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Palo Alto Networks (PANW - 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 PANW and the rest of the Computer and Technology group's stocks.
Palo Alto Networks is one of 642 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #8 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. PANW is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for PANW's full-year earnings has moved 25.28% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, PANW has returned 25.87% so far this year. In comparison, Computer and Technology companies have returned an average of 20.06%. This means that Palo Alto Networks is performing better than its sector in terms of year-to-date returns.
Breaking things down more, PANW is a member of the Security industry, which includes 11 individual companies and currently sits at #27 in the Zacks Industry Rank. Stocks in this group have gained about 22.84% so far this year, so PANW is performing better this group in terms of year-to-date returns.
PANW 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.