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ServiceNow (NOW) Stock Moves -0.6%: What You Should Know
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In the latest trading session, ServiceNow (NOW - Free Report) closed at $469.82, marking a -0.6% move from the previous day. Elsewhere, the Dow gained 0.29%, while the tech-heavy Nasdaq added 1.92%.
Heading into today, shares of the maker of software that automates companies' technology operations had gained 13.91% over the past month, outpacing the Computer and Technology sector's gain of 10.29% and the S&P 500's gain of 6.51% in that time.
ServiceNow will be looking to display strength as it nears its next earnings release, which is expected to be April 26, 2023. The company is expected to report EPS of $2.02, up 16.76% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.09 billion, up 21.39% from the year-ago period.
NOW's full-year Zacks Consensus Estimates are calling for earnings of $9.15 per share and revenue of $8.85 billion. These results would represent year-over-year changes of +20.55% and +22.2%, respectively.
Any recent changes to analyst estimates for ServiceNow should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.45% higher. ServiceNow is currently a Zacks Rank #2 (Buy).
Digging into valuation, ServiceNow currently has a Forward P/E ratio of 51.64. This represents a premium compared to its industry's average Forward P/E of 22.86.
Meanwhile, NOW's PEG ratio is currently 1.83. 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 1.4 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 152, putting it in the bottom 40% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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ServiceNow (NOW) Stock Moves -0.6%: What You Should Know
In the latest trading session, ServiceNow (NOW - Free Report) closed at $469.82, marking a -0.6% move from the previous day. Elsewhere, the Dow gained 0.29%, while the tech-heavy Nasdaq added 1.92%.
Heading into today, shares of the maker of software that automates companies' technology operations had gained 13.91% over the past month, outpacing the Computer and Technology sector's gain of 10.29% and the S&P 500's gain of 6.51% in that time.
ServiceNow will be looking to display strength as it nears its next earnings release, which is expected to be April 26, 2023. The company is expected to report EPS of $2.02, up 16.76% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.09 billion, up 21.39% from the year-ago period.
NOW's full-year Zacks Consensus Estimates are calling for earnings of $9.15 per share and revenue of $8.85 billion. These results would represent year-over-year changes of +20.55% and +22.2%, respectively.
Any recent changes to analyst estimates for ServiceNow should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.45% higher. ServiceNow is currently a Zacks Rank #2 (Buy).
Digging into valuation, ServiceNow currently has a Forward P/E ratio of 51.64. This represents a premium compared to its industry's average Forward P/E of 22.86.
Meanwhile, NOW's PEG ratio is currently 1.83. 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 1.4 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 152, putting it in the bottom 40% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.