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ServiceNow (NOW) Rises As Market Takes a Dip: Key Facts

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ServiceNow (NOW - Free Report) closed the latest trading day at $890.64, indicating a +1.16% change from the previous session's end. The stock outpaced the S&P 500's daily loss of 0.17%. On the other hand, the Dow registered a loss of 0.44%, and the technology-centric Nasdaq decreased by 0.04%.

Heading into today, shares of the maker of software that automates companies' technology operations had gained 5.46% over the past month, outpacing the Computer and Technology sector's gain of 1.41% and the S&P 500's gain of 1.25% in that time.

The upcoming earnings release of ServiceNow will be of great interest to investors. The company's earnings report is expected on October 23, 2024. The company is predicted to post an EPS of $3.46, indicating a 18.49% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $2.74 billion, indicating a 19.78% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $13.75 per share and a revenue of $10.9 billion, demonstrating changes of +27.55% and +21.51%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for ServiceNow. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, the Zacks Consensus EPS estimate remained stagnant. ServiceNow currently has a Zacks Rank of #3 (Hold).

Looking at valuation, ServiceNow is presently trading at a Forward P/E ratio of 64.03. This indicates a premium in contrast to its industry's Forward P/E of 27.95.

One should further note that NOW currently holds a PEG ratio of 2.6. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computers - IT Services industry currently had an average PEG ratio of 2.75 as of yesterday's close.

The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 44, this industry ranks in the top 18% of all industries, numbering over 250.

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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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