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ServiceNow (NOW) Stock Declines While Market Improves: Some Information for Investors
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The most recent trading session ended with ServiceNow (NOW - Free Report) standing at $885.83, reflecting a -0.74% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.03% gain on the day. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.2%.
The the stock of maker of software that automates companies' technology operations has risen by 7.15% in the past month, leading the Computer and Technology sector's loss of 1.2% and the S&P 500's gain of 1.54%.
The upcoming earnings release of ServiceNow will be of great interest to investors. The company is forecasted to report an EPS of $3.46, showcasing a 18.49% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $2.74 billion, showing a 19.78% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.75 per share and revenue of $10.9 billion. These totals would mark changes of +27.55% and +21.51%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for ServiceNow. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. ServiceNow is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, ServiceNow currently has a Forward P/E ratio of 64.91. Its industry sports an average Forward P/E of 27.42, so one might conclude that ServiceNow is trading at a premium comparatively.
We can additionally observe that NOW currently boasts a PEG ratio of 2.64. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Computers - IT Services industry was having an average PEG ratio of 3.04.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 44, placing it within the top 18% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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ServiceNow (NOW) Stock Declines While Market Improves: Some Information for Investors
The most recent trading session ended with ServiceNow (NOW - Free Report) standing at $885.83, reflecting a -0.74% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.03% gain on the day. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.2%.
The the stock of maker of software that automates companies' technology operations has risen by 7.15% in the past month, leading the Computer and Technology sector's loss of 1.2% and the S&P 500's gain of 1.54%.
The upcoming earnings release of ServiceNow will be of great interest to investors. The company is forecasted to report an EPS of $3.46, showcasing a 18.49% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $2.74 billion, showing a 19.78% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.75 per share and revenue of $10.9 billion. These totals would mark changes of +27.55% and +21.51%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for ServiceNow. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. ServiceNow is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, ServiceNow currently has a Forward P/E ratio of 64.91. Its industry sports an average Forward P/E of 27.42, so one might conclude that ServiceNow is trading at a premium comparatively.
We can additionally observe that NOW currently boasts a PEG ratio of 2.64. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Computers - IT Services industry was having an average PEG ratio of 3.04.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 44, placing it within the top 18% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.