Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. 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 the Computer and Technology sector. This group includes 640 individual stocks and currently holds a Zacks Sector Rank of #5. 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 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. PYPL is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for PYPL's full-year earnings has moved 0.72% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, PYPL has gained about 33.71% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 24.58% on a year-to-date basis. As we can see, PayPal Holdings is performing better than its sector in the calendar year.
Looking more specifically, PYPL belongs to the Internet - Software industry, which includes 84 individual stocks and currently sits at #51 in the Zacks Industry Rank. On average, this group has gained an average of 31.76% so far this year, meaning that PYPL is performing better in terms of year-to-date returns.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to PYPL as it looks to continue its solid performance.