Is Adyen (ADYEY) Stock Outpacing Its Computer and Technology Peers This Year?

The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Adyen N.V. Unsponsored ADR (ADYEY) 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? 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.

Adyen N.V. Unsponsored ADR is a member of our Computer and Technology group, which includes 608 different companies and currently sits at #6 in the Zacks Sector Rank. 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 proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Adyen N.V. Unsponsored ADR is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for ADYEY's full-year earnings has moved 4.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that ADYEY has returned about 29.4% since the start of the calendar year. In comparison, Computer and Technology companies have returned an average of 1.1%. This means that Adyen N.V. Unsponsored ADR is outperforming the sector as a whole this year.

One other Computer and Technology stock that has outperformed the sector so far this year is Intuit (INTU). The stock is up 20% year-to-date.

Over the past three months, Intuit's consensus EPS estimate for the current year has increased 3.8%. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Adyen N.V. Unsponsored ADR belongs to the Internet - Software industry, a group that includes 169 individual stocks and currently sits at #52 in the Zacks Industry Rank. On average, stocks in this group have gained 11.2% this year, meaning that ADYEY is performing better in terms of year-to-date returns.

On the other hand, Intuit belongs to the Computer - Software industry. This 30-stock industry is currently ranked #29. The industry has moved +11% year to date.

Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Adyen N.V. Unsponsored ADR and Intuit as they could maintain their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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