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ServiceNow (NOW) Outpaces Stock Market Gains: What You Should Know
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ServiceNow (NOW - Free Report) closed at $632.80 in the latest trading session, marking a +1.69% move from the prior day. This change outpaced the S&P 500's 1.15% gain on the day.
Coming into today, shares of the maker of software that automates companies' technology operations had lost 5.76% in the past month. In that same time, the Computer and Technology sector lost 6.41%, while the S&P 500 lost 4.67%.
NOW will be looking to display strength as it nears its next earnings release. On that day, NOW is projected to report earnings of $1.20 per share, which would represent a year-over-year decline of 0.83%. Meanwhile, our latest consensus estimate is calling for revenue of $1.48 billion, up 28.3% from the prior-year quarter.
NOW's full-year Zacks Consensus Estimates are calling for earnings of $5.82 per share and revenue of $5.83 billion. These results would represent year-over-year changes of +25.7% and +29.09%, respectively.
It is also important to note the recent changes to analyst estimates for NOW. These recent revisions tend to reflect the evolving nature of short-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.94% higher. NOW is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, NOW is holding a Forward P/E ratio of 106.99. This valuation marks a premium compared to its industry's average Forward P/E of 32.71.
Meanwhile, NOW's PEG ratio is currently 3.8. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. NOW's industry had an average PEG ratio of 1.8 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 210, which puts it in the bottom 18% 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.
To follow NOW in the coming trading sessions, be sure to utilize Zacks.com.
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ServiceNow (NOW) Outpaces Stock Market Gains: What You Should Know
ServiceNow (NOW - Free Report) closed at $632.80 in the latest trading session, marking a +1.69% move from the prior day. This change outpaced the S&P 500's 1.15% gain on the day.
Coming into today, shares of the maker of software that automates companies' technology operations had lost 5.76% in the past month. In that same time, the Computer and Technology sector lost 6.41%, while the S&P 500 lost 4.67%.
NOW will be looking to display strength as it nears its next earnings release. On that day, NOW is projected to report earnings of $1.20 per share, which would represent a year-over-year decline of 0.83%. Meanwhile, our latest consensus estimate is calling for revenue of $1.48 billion, up 28.3% from the prior-year quarter.
NOW's full-year Zacks Consensus Estimates are calling for earnings of $5.82 per share and revenue of $5.83 billion. These results would represent year-over-year changes of +25.7% and +29.09%, respectively.
It is also important to note the recent changes to analyst estimates for NOW. These recent revisions tend to reflect the evolving nature of short-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.94% higher. NOW is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, NOW is holding a Forward P/E ratio of 106.99. This valuation marks a premium compared to its industry's average Forward P/E of 32.71.
Meanwhile, NOW's PEG ratio is currently 3.8. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. NOW's industry had an average PEG ratio of 1.8 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 210, which puts it in the bottom 18% 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.
To follow NOW in the coming trading sessions, be sure to utilize Zacks.com.