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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. Has PayPal Holdings (PYPL - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

PayPal Holdings is one of 596 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #5 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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).

Over the past three months, the Zacks Consensus Estimate for PYPL's full-year earnings has moved 1.38% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, PYPL has returned 3.10% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 2.57% on a year-to-date basis. This means that PayPal Holdings is performing better than its sector in terms of year-to-date returns.

Looking more specifically, PYPL belongs to the Internet - Software industry, which includes 75 individual stocks and currently sits at #66 in the Zacks Industry Rank. On average, this group has gained an average of 3.77% so far this year, meaning that PYPL 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 PYPL as it looks to continue its solid performance.


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