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 637 different companies and currently sits at #7 in the Zacks Sector Rank. 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 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. PYPL is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for PYPL's full-year earnings has moved 4.40% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, PYPL has returned 32.49% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 12.28% 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, a group that includes 83 individual stocks and currently sits at #74 in the Zacks Industry Rank. Stocks in this group have gained about 26.16% so far this year, so PYPL is performing better this group 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.