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Has Zscaler (ZS) Outpaced Other Computer and Technology Stocks This Year?

Zacks Equity Research

Investors focused on the Computer and Technology space have likely heard of Zscaler (ZS), but is the stock performing well in comparison to the rest of its sector peers? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.

Zscaler is a member of our Computer and Technology group, which includes 635 different companies and currently sits at #7 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. ZS is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for ZS's full-year earnings has moved 36.58% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, ZS has gained about 96.99% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 19.86% on a year-to-date basis. This shows that Zscaler is outperforming its peers so far this year.

Looking more specifically, ZS belongs to the Internet - Services industry, a group that includes 50 individual stocks and currently sits at #73 in the Zacks Industry Rank. On average, stocks in this group have gained 13.28% this year, meaning that ZS is performing better in terms of year-to-date returns.

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


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