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ServiceNow (NOW) Stock Moves -0.32%: What You Should Know

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ServiceNow (NOW - Free Report) closed the most recent trading day at $380.64, moving -0.32% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.41%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq lost 6.67%.

Heading into today, shares of the maker of software that automates companies' technology operations had lost 4.99% over the past month, outpacing the Computer and Technology sector's loss of 6.38% and lagging the S&P 500's loss of 4.4% in that time.

Investors will be hoping for strength from ServiceNow as it approaches its next earnings release. On that day, ServiceNow is projected to report earnings of $2 per share, which would represent year-over-year growth of 36.99%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.93 billion, up 19.82% from the year-ago period.

NOW's full-year Zacks Consensus Estimates are calling for earnings of $7.32 per share and revenue of $7.24 billion. These results would represent year-over-year changes of +23.65% and +22.8%, respectively.

Investors should also note any recent changes to analyst estimates for ServiceNow. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. ServiceNow is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, ServiceNow is holding a Forward P/E ratio of 52.17. For comparison, its industry has an average Forward P/E of 21.79, which means ServiceNow is trading at a premium to the group.

Investors should also note that NOW has a PEG ratio of 1.85 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computers - IT Services industry currently had an average PEG ratio of 1.32 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 69, which puts it in the top 28% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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