The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies 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 one of 625 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #2 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. PAYC is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for PAYC's full-year earnings has moved 15.35% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, PAYC has returned 90.20% so far this year. At the same time, Computer and Technology stocks have gained an average of 13.40%. As we can see, Paycom Software is performing better than its sector in the calendar year.
Breaking things down more, PAYC is a member of the Internet - Software industry, which includes 70 individual companies and currently sits at #82 in the Zacks Industry Rank. Stocks in this group have gained about 32.67% so far this year, so PAYC is performing better this group in terms of year-to-date returns.
Investors in the Computer and Technology sector will want to keep a close eye on PAYC as it attempts to continue its solid performance.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.