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ServiceNow (NOW) Gains As Market Dips: What You Should Know
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ServiceNow (NOW - Free Report) closed the most recent trading day at $548.67, moving +1.61% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 2.93%.
Prior to today's trading, shares of the maker of software that automates companies' technology operations had lost 1.67% over the past month. This has lagged the Computer and Technology sector's gain of 2.92% and the S&P 500's gain of 4.22% in that time.
ServiceNow will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.05, up 26.54% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.13 billion, up 21.52% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.59 per share and revenue of $8.81 billion. These totals would mark changes of +26.35% and +21.63%, respectively, from last year.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant within the past month. ServiceNow is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that ServiceNow has a Forward P/E ratio of 56.33 right now. This represents a premium compared to its industry's average Forward P/E of 20.01.
Meanwhile, NOW's PEG ratio is currently 2.24. 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 was holding an average PEG ratio of 2.08 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 107, putting it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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) Gains As Market Dips: What You Should Know
ServiceNow (NOW - Free Report) closed the most recent trading day at $548.67, moving +1.61% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 2.93%.
Prior to today's trading, shares of the maker of software that automates companies' technology operations had lost 1.67% over the past month. This has lagged the Computer and Technology sector's gain of 2.92% and the S&P 500's gain of 4.22% in that time.
ServiceNow will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.05, up 26.54% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.13 billion, up 21.52% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.59 per share and revenue of $8.81 billion. These totals would mark changes of +26.35% and +21.63%, respectively, from last year.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant within the past month. ServiceNow is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that ServiceNow has a Forward P/E ratio of 56.33 right now. This represents a premium compared to its industry's average Forward P/E of 20.01.
Meanwhile, NOW's PEG ratio is currently 2.24. 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 was holding an average PEG ratio of 2.08 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 107, putting it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.