The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Zendesk (ZEN - 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 ZEN and the rest of the Computer and Technology group's stocks.
Zendesk is one of 630 companies in the Computer and Technology group. The Computer and Technology group currently sits at #6 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 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. ZEN is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for ZEN's full-year earnings has moved 34.07% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, ZEN has moved about 29.95% on a year-to-date basis. Meanwhile, stocks in the Computer and Technology group have gained about 28.27% on average. This means that Zendesk is outperforming the sector as a whole this year.
Breaking things down more, ZEN is a member of the Internet - Software industry, which includes 91 individual companies and currently sits at #98 in the Zacks Industry Rank. This group has gained an average of 19.13% so far this year, so ZEN is performing better in this area.
ZEN 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.