Investors focused on the Computer and Technology space have likely heard of ServiceNow (NOW - Free Report) , but is the stock performing well in comparison to the rest of its sector peers? 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 one of 638 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #7 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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. 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 is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, NOW has returned 56.11% so far this year. At the same time, Computer and Technology stocks have gained an average of 19.37%. 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 28 individual stocks and currently sits at #30 in the Zacks Industry Rank. This group has gained an average of 30.56% so far this year, so NOW is performing better in this area.
Investors in the Computer and Technology sector will want to keep a close eye on NOW as it attempts to continue its solid performance.