Has Paycom Software (PAYC) Outpaced Other Computer and Technology Stocks This Year?
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. Paycom Software (PAYC) 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 PAYC and the rest of the Computer and Technology group's stocks.
Paycom Software is a member of the Computer and Technology sector. This group includes 638 individual stocks and currently holds a Zacks Sector Rank of #7. 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. PAYC is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for PAYC's full-year earnings has moved 5.80% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, PAYC has gained about 79.11% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 23.32% on a year-to-date basis. This means that Paycom Software is performing better than its sector in terms of year-to-date returns.
Looking more specifically, PAYC belongs to the Internet - Software industry, a group that includes 89 individual stocks and currently sits at #88 in the Zacks Industry Rank. Stocks in this group have gained about 24.65% so far this year, so PAYC is performing better this group in terms of year-to-date returns.
Investors with an interest in Computer and Technology stocks should continue to track PAYC. The stock will be looking to continue its solid performance.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.