Is ServiceNow (NOW) Outperforming Other Computer and Technology Stocks This Year?
For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Has ServiceNow (NOW) been one of those stocks this year? 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 a member of the Computer and Technology sector. This group includes 619 individual stocks and currently holds a Zacks Sector Rank of #2. 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 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. ServiceNow is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for NOW’s full-year earnings has moved 4.2% higher within the past quarter. This means that analyst sentiment is stronger and the stock’s earnings outlook is improving.
Based on the most recent data, NOW has returned 47.4% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 28.1% on average. This means that ServiceNow is outperforming the sector as a whole this year.
Another Computer and Technology stock, which has outperformed the sector so far this year, is Blend Labs (BLND). The stock has returned 103.5% year-to-date.
Over the past three months, Blend Labs’ consensus EPS estimate for the current year has increased 29.6%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, ServiceNow belongs to the Computers – IT Services industry, which includes 40 individual stocks and currently sits at #39 in the Zacks Industry Rank. On average, this group has gained an average of 16% so far this year, meaning that NOW is performing better in terms of year-to-date returns.
In contrast, Blend Labs falls under the Internet – Software industry. Currently, this industry has 145 stocks and is ranked #39. Since the beginning of the year, the industry has moved +32.6%.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to ServiceNow and Blend Labs as they could maintain their solid performance.
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