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Is ServiceNow (NOW) Stock Outpacing Its Computer and Technology Peers 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. Is ServiceNow (NOW - Free Report) one of those stocks right now? 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 612 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 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. 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 1.34% 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 42.27% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 10.72% on a year-to-date basis. This means that ServiceNow is outperforming the sector as a whole this year.

Breaking things down more, NOW is a member of the Computers - IT Services industry, which includes 32 individual companies and currently sits at #145 in the Zacks Industry Rank. Stocks in this group have gained about 4.54% so far this year, so NOW is performing better this group 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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