The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Zendesk (ZEN) one of those stocks right now? 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.
Zendesk is one of 615 individual stocks in the Computer and Technology sector. Collectively, these companies sit 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 proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. ZEN is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for ZEN’s full-year earnings has moved 7.60{cb3fe4c54de06d7c4b8dceae281fb32e521027d1659af7adec2f427d2f5333d9} higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, ZEN has moved about 75.90{cb3fe4c54de06d7c4b8dceae281fb32e521027d1659af7adec2f427d2f5333d9} on a year-to-date basis. Meanwhile, stocks in the Computer and Technology group have gained about 38.60{cb3fe4c54de06d7c4b8dceae281fb32e521027d1659af7adec2f427d2f5333d9} on average. As we can see, Zendesk is performing better than its sector in the calendar year.
To break things down more, ZEN belongs to the Internet – Software industry, a group that includes 96 individual companies and currently sits at #177 in the Zacks Industry Rank. On average, stocks in this group have gained 102.72{cb3fe4c54de06d7c4b8dceae281fb32e521027d1659af7adec2f427d2f5333d9} this year, meaning that ZEN 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 ZEN as it looks 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.
