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ServiceNow (NOW) Stock Drops Despite Market Gains: Important Facts to Note
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The most recent trading session ended with ServiceNow (NOW - Free Report) standing at $925.55, reflecting a -1.26% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.15%.
Shares of the maker of software that automates companies' technology operations witnessed a gain of 13.17% over the previous month, beating the performance of the Computer and Technology sector with its loss of 0.02% and the S&P 500's gain of 2%.
The upcoming earnings release of ServiceNow will be of great interest to investors. The company's earnings per share (EPS) are projected to be $3.46, reflecting a 18.49% increase from the same quarter last 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.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $13.75 per share and a revenue of $10.9 billion, signifying shifts of +27.55% and +21.51%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for ServiceNow. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. ServiceNow is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that ServiceNow has a Forward P/E ratio of 68.17 right now. This signifies a premium in comparison to the average Forward P/E of 27.06 for its industry.
It is also worth noting that NOW currently has a PEG ratio of 2.77. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Computers - IT Services industry was having an average PEG ratio of 3.08.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 67, placing it within the top 27% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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ServiceNow (NOW) Stock Drops Despite Market Gains: Important Facts to Note
The most recent trading session ended with ServiceNow (NOW - Free Report) standing at $925.55, reflecting a -1.26% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.15%.
Shares of the maker of software that automates companies' technology operations witnessed a gain of 13.17% over the previous month, beating the performance of the Computer and Technology sector with its loss of 0.02% and the S&P 500's gain of 2%.
The upcoming earnings release of ServiceNow will be of great interest to investors. The company's earnings per share (EPS) are projected to be $3.46, reflecting a 18.49% increase from the same quarter last 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.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $13.75 per share and a revenue of $10.9 billion, signifying shifts of +27.55% and +21.51%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for ServiceNow. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. ServiceNow is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that ServiceNow has a Forward P/E ratio of 68.17 right now. This signifies a premium in comparison to the average Forward P/E of 27.06 for its industry.
It is also worth noting that NOW currently has a PEG ratio of 2.77. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Computers - IT Services industry was having an average PEG ratio of 3.08.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 67, placing it within the top 27% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.