Has ServiceNow (NOW) Outpaced Other Computer and Technology Stocks 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. ServiceNow (NOW) 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 NOW and the rest of the Computer and Technology group's stocks.
ServiceNow is one of 630 companies in the Computer and Technology group. The Computer and Technology group currently sits at #6 within 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 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. NOW is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for NOW's full-year earnings has moved 12.10% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, NOW has gained about 37.43% so far this year. In comparison, Computer and Technology companies have returned an average of 25.70%. As we can see, ServiceNow is performing better than its sector in the calendar year.
Looking more specifically, NOW belongs to the Computers - IT Services industry, a group that includes 27 individual stocks and currently sits at #82 in the Zacks Industry Rank. On average, stocks in this group have gained 14.73% this year, meaning that NOW is performing better in terms of year-to-date returns.
NOW 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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