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ServiceNow (NOW) Exceeds Market Returns: Some Facts to Consider
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The most recent trading session ended with ServiceNow (NOW - Free Report) standing at $759.16, reflecting a +0.29% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 0.11%. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq gained 0.23%.
Coming into today, shares of the maker of software that automates companies' technology operations had gained 2.28% in the past month. In that same time, the Computer and Technology sector gained 1.54%, while the S&P 500 gained 1.5%.
The upcoming earnings release of ServiceNow will be of great interest to investors. The company's earnings per share (EPS) are projected to be $3.13, reflecting a 32.07% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.58 billion, up 23.22% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.18 per share and a revenue of $10.86 billion, indicating changes of +22.26% and +21.09%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for ServiceNow. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. ServiceNow is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, ServiceNow is holding a Forward P/E ratio of 57.44. This indicates a premium in contrast to its industry's Forward P/E of 25.15.
Investors should also note that NOW has a PEG ratio of 2.23 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computers - IT Services industry had an average PEG ratio of 2.27 as trading concluded yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 48, this industry ranks in the top 20% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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) Exceeds Market Returns: Some Facts to Consider
The most recent trading session ended with ServiceNow (NOW - Free Report) standing at $759.16, reflecting a +0.29% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 0.11%. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq gained 0.23%.
Coming into today, shares of the maker of software that automates companies' technology operations had gained 2.28% in the past month. In that same time, the Computer and Technology sector gained 1.54%, while the S&P 500 gained 1.5%.
The upcoming earnings release of ServiceNow will be of great interest to investors. The company's earnings per share (EPS) are projected to be $3.13, reflecting a 32.07% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.58 billion, up 23.22% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.18 per share and a revenue of $10.86 billion, indicating changes of +22.26% and +21.09%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for ServiceNow. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. ServiceNow is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, ServiceNow is holding a Forward P/E ratio of 57.44. This indicates a premium in contrast to its industry's Forward P/E of 25.15.
Investors should also note that NOW has a PEG ratio of 2.23 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computers - IT Services industry had an average PEG ratio of 2.27 as trading concluded yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 48, this industry ranks in the top 20% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.