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ServiceNow (NOW) Dips More Than Broader Markets: What You Should Know
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ServiceNow (NOW - Free Report) closed the most recent trading day at $385.50, moving -0.71% from the previous trading session. This change lagged the S&P 500's daily loss of 0.4%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq lost 4.72%.
Heading into today, shares of the maker of software that automates companies' technology operations had lost 1.02% over the past month, outpacing the Computer and Technology sector's loss of 8.46% and the S&P 500's loss of 5.57% in that time.
Investors will be hoping for strength from ServiceNow as it approaches its next earnings release. In that report, analysts expect ServiceNow to post earnings of $2 per share. This would mark year-over-year growth of 36.99%. Meanwhile, our latest consensus estimate is calling for revenue of $1.93 billion, up 19.82% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for ServiceNow. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 past month, the Zacks Consensus EPS estimate remained stagnant. ServiceNow is currently a Zacks Rank #4 (Sell).
In terms of valuation, ServiceNow is currently trading at a Forward P/E ratio of 53.04. This valuation marks a premium compared to its industry's average Forward P/E of 23.34.
We can also see that NOW currently has a PEG ratio of 1.88. 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. Computers - IT Services stocks are, on average, holding a PEG ratio of 1.38 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 146, which puts it in the bottom 43% 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.
To follow NOW in the coming trading sessions, be sure to utilize Zacks.com.
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ServiceNow (NOW) Dips More Than Broader Markets: What You Should Know
ServiceNow (NOW - Free Report) closed the most recent trading day at $385.50, moving -0.71% from the previous trading session. This change lagged the S&P 500's daily loss of 0.4%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq lost 4.72%.
Heading into today, shares of the maker of software that automates companies' technology operations had lost 1.02% over the past month, outpacing the Computer and Technology sector's loss of 8.46% and the S&P 500's loss of 5.57% in that time.
Investors will be hoping for strength from ServiceNow as it approaches its next earnings release. In that report, analysts expect ServiceNow to post earnings of $2 per share. This would mark year-over-year growth of 36.99%. Meanwhile, our latest consensus estimate is calling for revenue of $1.93 billion, up 19.82% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for ServiceNow. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 past month, the Zacks Consensus EPS estimate remained stagnant. ServiceNow is currently a Zacks Rank #4 (Sell).
In terms of valuation, ServiceNow is currently trading at a Forward P/E ratio of 53.04. This valuation marks a premium compared to its industry's average Forward P/E of 23.34.
We can also see that NOW currently has a PEG ratio of 1.88. 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. Computers - IT Services stocks are, on average, holding a PEG ratio of 1.38 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 146, which puts it in the bottom 43% 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.
To follow NOW in the coming trading sessions, be sure to utilize Zacks.com.