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

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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? 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 a member of our Computer and Technology group, which includes 630 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 #1 (Strong Buy).

The Zacks Consensus Estimate for NOW's full-year earnings has moved 14.94% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, NOW has gained about 59.12% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 34.27% on average. This means that ServiceNow is outperforming the sector as a whole this year.

Looking more specifically, NOW belongs to the Computers - IT Services industry, which includes 29 individual stocks and currently sits at #102 in the Zacks Industry Rank. Stocks in this group have gained about 27.74% 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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