The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Zscaler (ZS - 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 ZS and the rest of the Computer and Technology group's stocks.
Zscaler is one of 637 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #10 in the Zacks Sector Rank. 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. ZS is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for ZS's full-year earnings has moved 36.58% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, ZS has moved about 84.77% on a year-to-date basis. In comparison, Computer and Technology companies have returned an average of 12.64%. As we can see, Zscaler is performing better than its sector in the calendar year.
To break things down more, ZS belongs to the Internet - Services industry, a group that includes 50 individual companies and currently sits at #91 in the Zacks Industry Rank. On average, stocks in this group have gained 6.54% this year, meaning that ZS is performing better in terms of year-to-date returns.
ZS 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.