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. Has ServiceNow (NOW) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.
ServiceNow is a member of our Computer and Technology group, which includes 639 different companies and currently sits at #5 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. NOW is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for NOW's full-year earnings has moved 38.93% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that NOW has returned about 64.56% since the start of the calendar year. At the same time, Computer and Technology stocks have gained an average of 21.39%. This means that ServiceNow is outperforming the sector as a whole this year.
Looking more specifically, NOW belongs to the Computers - IT Services industry, a group that includes 27 individual stocks and currently sits at #110 in the Zacks Industry Rank. On average, stocks in this group have gained 26.81% this year, meaning that NOW is performing better in terms of year-to-date returns.
Investors in the Computer and Technology sector will want to keep a close eye on NOW as it attempts to continue its solid performance.
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ServiceNow, Inc. (NOW) : Free Stock Analysis Report
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