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ServiceNow (NOW) Stock Moves -0.31%: What You Should Know
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In the latest trading session, ServiceNow (NOW - Free Report) closed at $570.55, marking a -0.31% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.94%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq lost 1.53%.
Coming into today, shares of the maker of software that automates companies' technology operations had gained 1.87% in the past month. In that same time, the Computer and Technology sector gained 3.69%, while the S&P 500 gained 1.85%.
Investors will be hoping for strength from ServiceNow as it approaches its next earnings release. On that day, ServiceNow is projected to report earnings of $2.54 per share, which would represent year-over-year growth of 29.59%. Our most recent consensus estimate is calling for quarterly revenue of $2.27 billion, up 24.07% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.99 per share and revenue of $8.9 billion. These totals would mark changes of +31.62% and +22.83%, respectively, from last year.
Any recent changes to analyst estimates for ServiceNow should also be noted by investors. 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. ServiceNow is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note ServiceNow's current valuation metrics, including its Forward P/E ratio of 57.29. For comparison, its industry has an average Forward P/E of 24.92, which means ServiceNow is trading at a premium to the group.
It is also worth noting that NOW currently has a PEG ratio of 2.07. 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. NOW's industry had an average PEG ratio of 2.22 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% 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.
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) Stock Moves -0.31%: What You Should Know
In the latest trading session, ServiceNow (NOW - Free Report) closed at $570.55, marking a -0.31% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.94%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq lost 1.53%.
Coming into today, shares of the maker of software that automates companies' technology operations had gained 1.87% in the past month. In that same time, the Computer and Technology sector gained 3.69%, while the S&P 500 gained 1.85%.
Investors will be hoping for strength from ServiceNow as it approaches its next earnings release. On that day, ServiceNow is projected to report earnings of $2.54 per share, which would represent year-over-year growth of 29.59%. Our most recent consensus estimate is calling for quarterly revenue of $2.27 billion, up 24.07% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.99 per share and revenue of $8.9 billion. These totals would mark changes of +31.62% and +22.83%, respectively, from last year.
Any recent changes to analyst estimates for ServiceNow should also be noted by investors. 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. ServiceNow is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note ServiceNow's current valuation metrics, including its Forward P/E ratio of 57.29. For comparison, its industry has an average Forward P/E of 24.92, which means ServiceNow is trading at a premium to the group.
It is also worth noting that NOW currently has a PEG ratio of 2.07. 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. NOW's industry had an average PEG ratio of 2.22 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.