Yahoo Finance Are Computer and Technology Stocks Lagging ServiceNow (NOW) 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. ServiceNow (NOW) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? 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 a member of our Computer and Technology group, which includes 640 different companies and currently sits at #7 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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 #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for NOW's full-year earnings has moved 20.3% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that NOW has returned about 43.4% since the start of the calendar year. Meanwhile, stocks in the Computer and Technology group have gained about 33.1% 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 Synopsys (SNPS). The stock has returned 41% year-to-date.
For Synopsys, the consensus EPS estimate for the current year has increased 4.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, ServiceNow belongs to the Computers - IT Services industry, a group that includes 39 individual companies and currently sits at #81 in the Zacks Industry Rank. On average, this group has gained an average of 8.5% so far this year, meaning that NOW is performing better in terms of year-to-date returns.
In contrast, Synopsys falls under the Computer - Software industry. Currently, this industry has 39 stocks and is ranked #111. Since the beginning of the year, the industry has moved +37%.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to ServiceNow and Synopsys as they could maintain their solid performance.
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ServiceNow, Inc. (NOW) : Free Stock Analysis Report
Synopsys, Inc. (SNPS) : Free Stock Analysis Report
