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ServiceNow (NOW) Stock Sinks As Market Gains: What You Should Know
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ServiceNow (NOW - Free Report) closed at $938.59 in the latest trading session, marking a -0.64% move from the prior day. This change lagged the S&P 500's 0.61% gain on the day. Meanwhile, the Dow experienced a rise of 0.97%, and the technology-dominated Nasdaq saw an increase of 0.33%.
The maker of software that automates companies' technology operations's shares have seen an increase of 6.6% over the last month, not keeping up with the Computer and Technology sector's gain of 8.6% and outstripping the S&P 500's gain of 5.36%.
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's upcoming EPS is projected at $3.46, signifying a 18.49% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $2.74 billion, reflecting a 19.78% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $13.75 per share and revenue of $10.9 billion, which would represent changes of +27.55% and +21.51%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for ServiceNow. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 past month, there's been no change in the Zacks Consensus EPS estimate. ServiceNow presently features a Zacks Rank of #3 (Hold).
In terms of valuation, ServiceNow is presently being traded at a Forward P/E ratio of 68.7. This expresses a premium compared to the average Forward P/E of 28.58 of its industry.
One should further note that NOW currently holds a PEG ratio of 2.79. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computers - IT Services was holding an average PEG ratio of 2.83 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 46, positioning it in the top 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks 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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ServiceNow (NOW) Stock Sinks As Market Gains: What You Should Know
ServiceNow (NOW - Free Report) closed at $938.59 in the latest trading session, marking a -0.64% move from the prior day. This change lagged the S&P 500's 0.61% gain on the day. Meanwhile, the Dow experienced a rise of 0.97%, and the technology-dominated Nasdaq saw an increase of 0.33%.
The maker of software that automates companies' technology operations's shares have seen an increase of 6.6% over the last month, not keeping up with the Computer and Technology sector's gain of 8.6% and outstripping the S&P 500's gain of 5.36%.
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's upcoming EPS is projected at $3.46, signifying a 18.49% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $2.74 billion, reflecting a 19.78% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $13.75 per share and revenue of $10.9 billion, which would represent changes of +27.55% and +21.51%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for ServiceNow. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 past month, there's been no change in the Zacks Consensus EPS estimate. ServiceNow presently features a Zacks Rank of #3 (Hold).
In terms of valuation, ServiceNow is presently being traded at a Forward P/E ratio of 68.7. This expresses a premium compared to the average Forward P/E of 28.58 of its industry.
One should further note that NOW currently holds a PEG ratio of 2.79. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computers - IT Services was holding an average PEG ratio of 2.83 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 46, positioning it in the top 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks 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.