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ServiceNow (NOW) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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In the latest market close, ServiceNow (NOW - Free Report) reached $917.12, with a -0.19% movement compared to the previous day. The stock's performance was behind the S&P 500's daily loss of 0.02%. Meanwhile, the Dow gained 0.38%, and the Nasdaq, a tech-heavy index, added 0.04%.
The the stock of maker of software that automates companies' technology operations has risen by 3.2% in the past month, lagging the Computer and Technology sector's gain of 4.44% and the S&P 500's gain of 3.77%.
The investment community will be paying close attention to the earnings performance of ServiceNow in its upcoming release. The company is slated to reveal its earnings on October 23, 2024. In that report, analysts expect ServiceNow to post earnings of $3.46 per share. This would mark year-over-year growth of 18.49%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.74 billion, indicating a 19.78% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.75 per share and a revenue of $10.9 billion, indicating changes of +27.55% and +21.51%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for ServiceNow. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. ServiceNow currently has a Zacks Rank of #3 (Hold).
Digging into valuation, ServiceNow currently has a Forward P/E ratio of 66.83. Its industry sports an average Forward P/E of 29.24, so one might conclude that ServiceNow is trading at a premium comparatively.
Also, we should mention that NOW has a PEG ratio of 2.72. 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. The Computers - IT Services industry currently had an average PEG ratio of 2.86 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 50, finds itself in the top 20% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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) Sees a More Significant Dip Than Broader Market: Some Facts to Know
In the latest market close, ServiceNow (NOW - Free Report) reached $917.12, with a -0.19% movement compared to the previous day. The stock's performance was behind the S&P 500's daily loss of 0.02%. Meanwhile, the Dow gained 0.38%, and the Nasdaq, a tech-heavy index, added 0.04%.
The the stock of maker of software that automates companies' technology operations has risen by 3.2% in the past month, lagging the Computer and Technology sector's gain of 4.44% and the S&P 500's gain of 3.77%.
The investment community will be paying close attention to the earnings performance of ServiceNow in its upcoming release. The company is slated to reveal its earnings on October 23, 2024. In that report, analysts expect ServiceNow to post earnings of $3.46 per share. This would mark year-over-year growth of 18.49%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.74 billion, indicating a 19.78% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.75 per share and a revenue of $10.9 billion, indicating changes of +27.55% and +21.51%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for ServiceNow. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. ServiceNow currently has a Zacks Rank of #3 (Hold).
Digging into valuation, ServiceNow currently has a Forward P/E ratio of 66.83. Its industry sports an average Forward P/E of 29.24, so one might conclude that ServiceNow is trading at a premium comparatively.
Also, we should mention that NOW has a PEG ratio of 2.72. 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. The Computers - IT Services industry currently had an average PEG ratio of 2.86 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 50, finds itself in the top 20% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.