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The latest trading session saw ServiceNow (NOW - Free Report) ending at $749.11, denoting a +0.42% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 1.23%. Elsewhere, the Dow saw an upswing of 1.06%, while the tech-heavy Nasdaq appreciated by 1.7%.
The maker of software that automates companies' technology operations's shares have seen an increase of 6.45% over the last month, surpassing the Computer and Technology sector's gain of 1.98% and the S&P 500's gain of 0.94%.
Market participants will be closely following the financial results of ServiceNow in its upcoming release. The company plans to announce its earnings on January 24, 2024. In that report, analysts expect ServiceNow to post earnings of $2.77 per share. This would mark year-over-year growth of 21.49%. Alongside, our most recent consensus estimate is anticipating revenue of $2.4 billion, indicating a 23.55% upward movement from the same quarter last year.
Any recent changes to analyst estimates for ServiceNow should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.46% decrease. At present, ServiceNow boasts a Zacks Rank of #4 (Sell).
With respect to valuation, ServiceNow is currently being traded at a Forward P/E ratio of 58.39. For comparison, its industry has an average Forward P/E of 26.76, which means ServiceNow is trading at a premium to the group.
We can also see that NOW currently has a PEG ratio of 2.15. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. NOW's industry had an average PEG ratio of 2.56 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 76, placing it within the top 31% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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ServiceNow (NOW) Rises Yet Lags Behind Market: Some Facts Worth Knowing
The latest trading session saw ServiceNow (NOW - Free Report) ending at $749.11, denoting a +0.42% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 1.23%. Elsewhere, the Dow saw an upswing of 1.06%, while the tech-heavy Nasdaq appreciated by 1.7%.
The maker of software that automates companies' technology operations's shares have seen an increase of 6.45% over the last month, surpassing the Computer and Technology sector's gain of 1.98% and the S&P 500's gain of 0.94%.
Market participants will be closely following the financial results of ServiceNow in its upcoming release. The company plans to announce its earnings on January 24, 2024. In that report, analysts expect ServiceNow to post earnings of $2.77 per share. This would mark year-over-year growth of 21.49%. Alongside, our most recent consensus estimate is anticipating revenue of $2.4 billion, indicating a 23.55% upward movement from the same quarter last year.
Any recent changes to analyst estimates for ServiceNow should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.46% decrease. At present, ServiceNow boasts a Zacks Rank of #4 (Sell).
With respect to valuation, ServiceNow is currently being traded at a Forward P/E ratio of 58.39. For comparison, its industry has an average Forward P/E of 26.76, which means ServiceNow is trading at a premium to the group.
We can also see that NOW currently has a PEG ratio of 2.15. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. NOW's industry had an average PEG ratio of 2.56 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 76, placing it within the top 31% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.