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ServiceNow (NOW) Stock Moves -0.22%: What You Should Know
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The latest trading session saw ServiceNow (NOW - Free Report) ending at $727.56, denoting a -0.22% adjustment from its last day's close. This change was narrower than the S&P 500's daily loss of 0.37%. Meanwhile, the Dow lost 0.62%, and the Nasdaq, a tech-heavy index, lost 0.19%.
Prior to today's trading, shares of the maker of software that automates companies' technology operations had gained 3.62% over the past month. This has outpaced the Computer and Technology sector's gain of 1.22% and the S&P 500's gain of 1.56% in that time.
The investment community will be closely monitoring the performance of ServiceNow in its forthcoming earnings report. The company is scheduled to release its earnings on January 24, 2024. The company is predicted to post an EPS of $2.77, indicating a 21.49% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $2.4 billion, reflecting a 23.55% rise from the equivalent quarter last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for ServiceNow. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 1.09% fall in the Zacks Consensus EPS estimate. ServiceNow presently features a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that ServiceNow has a Forward P/E ratio of 56.99 right now. For comparison, its industry has an average Forward P/E of 26.86, which means ServiceNow is trading at a premium to the group.
It is also worth noting that NOW currently has a PEG ratio of 2.1. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Computers - IT Services industry was having an average PEG ratio of 2.55.
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 74, this industry ranks in the top 30% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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ServiceNow (NOW) Stock Moves -0.22%: What You Should Know
The latest trading session saw ServiceNow (NOW - Free Report) ending at $727.56, denoting a -0.22% adjustment from its last day's close. This change was narrower than the S&P 500's daily loss of 0.37%. Meanwhile, the Dow lost 0.62%, and the Nasdaq, a tech-heavy index, lost 0.19%.
Prior to today's trading, shares of the maker of software that automates companies' technology operations had gained 3.62% over the past month. This has outpaced the Computer and Technology sector's gain of 1.22% and the S&P 500's gain of 1.56% in that time.
The investment community will be closely monitoring the performance of ServiceNow in its forthcoming earnings report. The company is scheduled to release its earnings on January 24, 2024. The company is predicted to post an EPS of $2.77, indicating a 21.49% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $2.4 billion, reflecting a 23.55% rise from the equivalent quarter last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for ServiceNow. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 1.09% fall in the Zacks Consensus EPS estimate. ServiceNow presently features a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that ServiceNow has a Forward P/E ratio of 56.99 right now. For comparison, its industry has an average Forward P/E of 26.86, which means ServiceNow is trading at a premium to the group.
It is also worth noting that NOW currently has a PEG ratio of 2.1. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Computers - IT Services industry was having an average PEG ratio of 2.55.
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 74, this industry ranks in the top 30% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.