ServiceNow (NOW - Free Report) closed at $452.98 in the latest trading session, marking a -1.14% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.76%. Meanwhile, the Dow lost 1.45%, and the Nasdaq, a tech-heavy index, lost 1.99%.
Heading into today, shares of the maker of software that automates companies' technology operations had gained 7.27% over the past month, outpacing the Computer and Technology sector's gain of 1.8% and the S&P 500's gain of 1.56% in that time.
Wall Street will be looking for positivity from NOW as it approaches its next earnings report date. In that report, analysts expect NOW to post earnings of $1.04 per share. This would mark year-over-year growth of 5.05%. Our most recent consensus estimate is calling for quarterly revenue of $1.11 billion, up 25.34% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.45 per share and revenue of $4.41 billion, which would represent changes of +34.04% and +27.38%, respectively, from the prior year.
Any recent changes to analyst estimates for NOW should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. NOW is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, NOW currently has a Forward P/E ratio of 102.99. This represents a premium compared to its industry's average Forward P/E of 32.65.
We can also see that NOW currently has a PEG ratio of 3.56. 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. The Computers - IT Services was holding an average PEG ratio of 2.3 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 190, which puts it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.