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Is PayPal Holdings (PYPL) Stock Outpacing Its Computer and Technology Peers This Year?

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For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Is PayPal Holdings (PYPL - Free Report) one of those stocks right now? 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.

PayPal Holdings is a member of the Computer and Technology sector. This group includes 635 individual stocks and currently holds a Zacks Sector Rank of #7. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

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 4.24% 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 PYPL has returned about 39.30% since the start of the calendar year. At the same time, Computer and Technology stocks have gained an average of 18.73%. This means that PayPal Holdings is performing better than its sector in terms of year-to-date returns.

Looking more specifically, PYPL belongs to the Internet - Software industry, which includes 83 individual stocks and currently sits at #89 in the Zacks Industry Rank. This group has gained an average of 36.80% so far this year, so PYPL is performing better in this area.

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.


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