In the latest trading session, ServiceNow (NOW - Free Report) closed at $418.39, marking a +0.53% move from the previous day. This move outpaced the S&P 500's daily loss of 0.61%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, added 0.17%.
Heading into today, shares of the maker of software that automates companies' technology operations had lost 0.79% over the past month, lagging the Computer and Technology sector's gain of 0.89% and the S&P 500's gain of 0.89% 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%. Our most recent consensus estimate is calling for quarterly revenue of $1.93 billion, up 19.82% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.32 per share and revenue of $7.24 billion, which would represent changes of +23.65% and +22.8%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for ServiceNow. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. ServiceNow is currently a Zacks Rank #3 (Hold).
Investors should also note ServiceNow's current valuation metrics, including its Forward P/E ratio of 56.85. This represents a premium compared to its industry's average Forward P/E of 24.28.
We can also see that NOW currently has a PEG ratio of 2.02. 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. The Computers - IT Services was holding an average PEG ratio of 1.33 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 26% 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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In the latest trading session, ServiceNow (NOW - Free Report) closed at $418.39, marking a +0.53% move from the previous day. This move outpaced the S&P 500's daily loss of 0.61%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, added 0.17%.
Heading into today, shares of the maker of software that automates companies' technology operations had lost 0.79% over the past month, lagging the Computer and Technology sector's gain of 0.89% and the S&P 500's gain of 0.89% 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%. Our most recent consensus estimate is calling for quarterly revenue of $1.93 billion, up 19.82% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.32 per share and revenue of $7.24 billion, which would represent changes of +23.65% and +22.8%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for ServiceNow. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. ServiceNow is currently a Zacks Rank #3 (Hold).
Investors should also note ServiceNow's current valuation metrics, including its Forward P/E ratio of 56.85. This represents a premium compared to its industry's average Forward P/E of 24.28.
We can also see that NOW currently has a PEG ratio of 2.02. 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. The Computers - IT Services was holding an average PEG ratio of 1.33 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 26% 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.
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
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