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ServiceNow (NOW) Dips More Than Broader Markets: What You Should Know
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ServiceNow (NOW - Free Report) closed the most recent trading day at $505.22, moving -1.78% from the previous trading session. This change lagged the S&P 500's 0.06% loss on the day. Elsewhere, the Dow gained 0.72%, while the tech-heavy Nasdaq added 0.64%.
Prior to today's trading, shares of the maker of software that automates companies' technology operations had lost 12.62% over the past month. This has lagged the Computer and Technology sector's loss of 4.23% and the S&P 500's gain of 0.17% in that time.
Wall Street will be looking for positivity from ServiceNow as it approaches its next earnings report date. This is expected to be April 27, 2022. In that report, analysts expect ServiceNow to post earnings of $1.69 per share. This would mark year-over-year growth of 11.18%. Meanwhile, our latest consensus estimate is calling for revenue of $1.69 billion, up 24.56% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.35 per share and revenue of $7.39 billion, which would represent changes of +24.16% and +25.34%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for ServiceNow. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. 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 69.96. This represents a premium compared to its industry's average Forward P/E of 22.99.
We can also see that NOW currently has a PEG ratio of 2.49. 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 industry currently had an average PEG ratio of 1.34 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 201, which puts it in the bottom 21% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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ServiceNow (NOW) Dips More Than Broader Markets: What You Should Know
ServiceNow (NOW - Free Report) closed the most recent trading day at $505.22, moving -1.78% from the previous trading session. This change lagged the S&P 500's 0.06% loss on the day. Elsewhere, the Dow gained 0.72%, while the tech-heavy Nasdaq added 0.64%.
Prior to today's trading, shares of the maker of software that automates companies' technology operations had lost 12.62% over the past month. This has lagged the Computer and Technology sector's loss of 4.23% and the S&P 500's gain of 0.17% in that time.
Wall Street will be looking for positivity from ServiceNow as it approaches its next earnings report date. This is expected to be April 27, 2022. In that report, analysts expect ServiceNow to post earnings of $1.69 per share. This would mark year-over-year growth of 11.18%. Meanwhile, our latest consensus estimate is calling for revenue of $1.69 billion, up 24.56% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.35 per share and revenue of $7.39 billion, which would represent changes of +24.16% and +25.34%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for ServiceNow. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. 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 69.96. This represents a premium compared to its industry's average Forward P/E of 22.99.
We can also see that NOW currently has a PEG ratio of 2.49. 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 industry currently had an average PEG ratio of 1.34 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 201, which puts it in the bottom 21% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.