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Is ServiceNow (NOW) Outperforming Other Computer and Technology Stocks This Year?

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The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has ServiceNow (NOW - Free Report) been one of those stocks this year? 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.

ServiceNow is one of 625 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #5 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. ServiceNow 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 13.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, NOW has returned 77.1% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 47.2% on a year-to-date basis. As we can see, ServiceNow is performing better than its sector in the calendar year.

Another stock in the Computer and Technology sector, SentinelOne (S - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 60.5%.

In SentinelOne's case, the consensus EPS estimate for the current year increased 1.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, ServiceNow belongs to the Computers - IT Services industry, which includes 39 individual stocks and currently sits at #40 in the Zacks Industry Rank. On average, stocks in this group have gained 32.4% this year, meaning that NOW is performing better in terms of year-to-date returns. SentinelOne is also part of the same industry.

Investors with an interest in Computer and Technology stocks should continue to track ServiceNow and SentinelOne. These stocks will be looking to continue their solid performance.


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