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Has PayPal Holdings (PYPL) Outpaced Other Computer and Technology Stocks This Year?

Zacks Equity Research
Pzena (PZN) delivered earnings and revenue surprises of 0.00% and -3.29%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?

Investors focused on the Computer and Technology space have likely heard of PayPal Holdings (PYPL), but is the stock performing well in comparison to the rest of its sector peers? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.

PayPal Holdings is one of 635 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #7 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 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. PYPL is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for PYPL's full-year earnings has moved 4.40% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that PYPL has returned about 37.92% since the start of the calendar year. At the same time, Computer and Technology stocks have gained an average of 18.26%. 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 83 individual stocks and currently sits at #89 in the Zacks Industry Rank. This group has gained an average of 35.24% so far this year, so PYPL is performing better in this area.

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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