May 25, 2024


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Is PagerDuty (PD) Stock Outpacing Its Computer and Technology Peers 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. PagerDuty (PD) 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 PD and the rest of the Computer and Technology group’s stocks.

PagerDuty is a member of the Computer and Technology sector. This group includes 605 individual stocks and currently holds a Zacks Sector Rank of #5. 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. PD is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for PD’s full-year earnings has moved 3.76% higher. This means that analyst sentiment is stronger and the stock’s earnings outlook is improving.

Based on the most recent data, PD has returned 23.34% so far this year. In comparison, Computer and Technology companies have returned an average of 21.03%. As we can see, PagerDuty is performing better than its sector in the calendar year.

To break things down more, PD belongs to the Internet – Software industry, a group that includes 90 individual companies and currently sits at #114 in the Zacks Industry Rank. On average, stocks in this group have gained 52.79% this year, meaning that PD is slightly underperforming its industry in terms of year-to-date returns.

PD 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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