Back to top

Image: Bigstock

Are Computer and Technology Stocks Lagging Palo Alto Networks (PANW) This Year?

Read MoreHide Full Article

The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Palo Alto Networks (PANW - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Palo Alto Networks is a member of our Computer and Technology group, which includes 640 different companies and currently sits at #8 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. Palo Alto Networks is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for PANW's full-year earnings has moved 21.1% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that PANW has returned about 55.4% since the start of the calendar year. At the same time, Computer and Technology stocks have gained an average of 32.5%. This means that Palo Alto Networks is outperforming the sector as a whole this year.

Another stock in the Computer and Technology sector, Rambus (RMBS - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 84.5%.

In Rambus' case, the consensus EPS estimate for the current year increased 4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Palo Alto Networks belongs to the Internet - Software industry, a group that includes 146 individual stocks and currently sits at #105 in the Zacks Industry Rank. Stocks in this group have gained about 39.4% so far this year, so PANW is performing better this group in terms of year-to-date returns.

Rambus, however, belongs to the Electronics - Semiconductors industry. Currently, this 40-stock industry is ranked #191. The industry has moved +44.4% so far this year.

Palo Alto Networks and Rambus could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Rambus, Inc. (RMBS) - free report >>

Palo Alto Networks, Inc. (PANW) - free report >>

Published in