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? One simple way to answer this question is to take a look at the year-to-date performance of ZS and the rest of the Computer and Technology group’s stocks.
Zscaler is a member of our Computer and Technology group, which includes 628 different companies and currently sits at #12 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 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).
Over the past three months, the Zacks Consensus Estimate for ZS’s full-year earnings has moved 0.29% higher. This shows that analyst sentiment has improved and the company’s earnings outlook is stronger.
Based on the most recent data, ZS has returned 39.29% so far this year. In comparison, Computer and Technology companies have returned an average of 27.20%. This means that Zscaler is performing better than its sector in terms of year-to-date returns.
To break things down more, ZS belongs to the Internet – Services industry, a group that includes 48 individual companies and currently sits at #119 in the Zacks Industry Rank. On average, this group has gained an average of 44.57% so far this year, meaning that ZS 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 ZS as it looks to continue its solid performance.