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

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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 one of 640 companies in the Computer and Technology group. The Computer and Technology group currently sits at #10 within 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 is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. PYPL is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for PYPL's full-year earnings has moved 7.70% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, PYPL has moved about 27.35% on a year-to-date basis. Meanwhile, the Computer and Technology sector has returned an average of 19.92% on a year-to-date basis. As we can see, PayPal Holdings is performing better than its sector in the calendar year.

To break things down more, PYPL belongs to the Internet - Software industry, a group that includes 90 individual companies and currently sits at #81 in the Zacks Industry Rank. On average, this group has gained an average of 28.84% so far this year, meaning that PYPL is slightly underperforming its industry in terms of year-to-date returns.

Investors with an interest in Computer and Technology stocks should continue to track PYPL. The stock will be looking to continue its solid performance.


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