Back to top

Image: Bigstock

Is Zendesk (ZEN) Stock Outpacing Its Computer and Technology Peers This Year?

Read MoreHide Full Article

Investors focused on the Computer and Technology space have likely heard of Zendesk , but is the stock performing well in comparison to the rest of its sector peers? Let's take a closer look at the stock's year-to-date performance to find out.

Zendesk is a member of the Computer and Technology sector. This group includes 601 individual stocks and currently holds a Zacks Sector Rank of #8. 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 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 #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for ZEN's full-year earnings has moved 10.69% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, ZEN has returned 26.15% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 18.48% on average. This means that Zendesk is outperforming the sector as a whole this year.

Looking more specifically, ZEN belongs to the Internet - Software industry, a group that includes 89 individual stocks and currently sits at #172 in the Zacks Industry Rank. On average, stocks in this group have gained 68.02% this year, meaning that ZEN is slightly underperforming its industry in terms of year-to-date returns.

Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to ZEN as it looks to continue its solid performance.

Published in