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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. 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 a member of our Computer and Technology group, which includes 627 different companies and currently sits at #3 in the Zacks Sector Rank. 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. PYPL is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for PYPL's full-year earnings has moved 0.52% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, PYPL has gained about 16.50% so far this year. In comparison, Computer and Technology companies have returned an average of 10.40%. As we can see, PayPal Holdings is performing better than its sector in the calendar year.

Looking more specifically, PYPL belongs to the Internet - Software industry, a group that includes 70 individual stocks and currently sits at #108 in the Zacks Industry Rank. On average, this group has gained an average of 19.17% so far this year, meaning that PYPL is slightly underperforming its industry in terms of year-to-date returns.

PYPL will likely be looking to continue its solid performance, so investors interested Computer and Technology stocks should continue to pay close attention to the company.


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