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ServiceNow (NOW) Stock Moves -0.01%: What You Should Know
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In the latest trading session, ServiceNow (NOW - Free Report) closed at $654.54, marking a -0.01% move from the previous day. This change was narrower than the S&P 500's 0.3% loss on the day. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq gained 0.2%.
Prior to today's trading, shares of the maker of software that automates companies' technology operations had gained 9.17% over the past month. This has outpaced the Computer and Technology sector's gain of 0.63% and the S&P 500's gain of 3.11% in that time.
Investors will be hoping for strength from ServiceNow as it approaches its next earnings release. The company is expected to report EPS of $1.43, up 22.22% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.6 billion, up 28.06% from the year-ago period.
NOW's full-year Zacks Consensus Estimates are calling for earnings of $5.92 per share and revenue of $5.88 billion. These results would represent year-over-year changes of +27.86% and +30.13%, respectively.
Investors might also notice recent changes to analyst estimates for ServiceNow. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. ServiceNow is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, ServiceNow is currently trading at a Forward P/E ratio of 110.61. For comparison, its industry has an average Forward P/E of 33.16, which means ServiceNow is trading at a premium to the group.
Meanwhile, NOW's PEG ratio is currently 3.9. 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. Computers - IT Services stocks are, on average, holding a PEG ratio of 1.46 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 112, which puts it in the top 45% 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) Stock Moves -0.01%: What You Should Know
In the latest trading session, ServiceNow (NOW - Free Report) closed at $654.54, marking a -0.01% move from the previous day. This change was narrower than the S&P 500's 0.3% loss on the day. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq gained 0.2%.
Prior to today's trading, shares of the maker of software that automates companies' technology operations had gained 9.17% over the past month. This has outpaced the Computer and Technology sector's gain of 0.63% and the S&P 500's gain of 3.11% in that time.
Investors will be hoping for strength from ServiceNow as it approaches its next earnings release. The company is expected to report EPS of $1.43, up 22.22% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.6 billion, up 28.06% from the year-ago period.
NOW's full-year Zacks Consensus Estimates are calling for earnings of $5.92 per share and revenue of $5.88 billion. These results would represent year-over-year changes of +27.86% and +30.13%, respectively.
Investors might also notice recent changes to analyst estimates for ServiceNow. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. ServiceNow is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, ServiceNow is currently trading at a Forward P/E ratio of 110.61. For comparison, its industry has an average Forward P/E of 33.16, which means ServiceNow is trading at a premium to the group.
Meanwhile, NOW's PEG ratio is currently 3.9. 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. Computers - IT Services stocks are, on average, holding a PEG ratio of 1.46 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 112, which puts it in the top 45% 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.