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ServiceNow (NOW) Dips More Than Broader Markets: What You Should Know
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ServiceNow (NOW - Free Report) closed at $515 in the latest trading session, marking a -1.21% move from the prior day. This move lagged the S&P 500's daily loss of 1.1%. Elsewhere, the Dow lost 0.89%, while the tech-heavy Nasdaq added 0.03%.
Coming into today, shares of the maker of software that automates companies' technology operations had lost 19.05% in the past month. In that same time, the Computer and Technology sector lost 5.94%, while the S&P 500 lost 1.81%.
ServiceNow will be looking to display strength as it nears its next earnings release, which is expected to be January 26, 2022. On that day, ServiceNow is projected to report earnings of $1.43 per share, which would represent year-over-year growth of 22.22%. Meanwhile, our latest consensus estimate is calling for revenue of $1.6 billion, up 28.06% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for ServiceNow. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 2.61% lower within the past month. ServiceNow is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, ServiceNow is currently trading at a Forward P/E ratio of 72.81. Its industry sports an average Forward P/E of 27.62, so we one might conclude that ServiceNow is trading at a premium comparatively.
It is also worth noting that NOW currently has a PEG ratio of 2.57. 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. 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 161, which puts it in the bottom 37% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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ServiceNow (NOW) Dips More Than Broader Markets: What You Should Know
ServiceNow (NOW - Free Report) closed at $515 in the latest trading session, marking a -1.21% move from the prior day. This move lagged the S&P 500's daily loss of 1.1%. Elsewhere, the Dow lost 0.89%, while the tech-heavy Nasdaq added 0.03%.
Coming into today, shares of the maker of software that automates companies' technology operations had lost 19.05% in the past month. In that same time, the Computer and Technology sector lost 5.94%, while the S&P 500 lost 1.81%.
ServiceNow will be looking to display strength as it nears its next earnings release, which is expected to be January 26, 2022. On that day, ServiceNow is projected to report earnings of $1.43 per share, which would represent year-over-year growth of 22.22%. Meanwhile, our latest consensus estimate is calling for revenue of $1.6 billion, up 28.06% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for ServiceNow. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 2.61% lower within the past month. ServiceNow is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, ServiceNow is currently trading at a Forward P/E ratio of 72.81. Its industry sports an average Forward P/E of 27.62, so we one might conclude that ServiceNow is trading at a premium comparatively.
It is also worth noting that NOW currently has a PEG ratio of 2.57. 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. 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 161, which puts it in the bottom 37% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.