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ServiceNow (NOW) Outpaces Stock Market Gains: What You Should Know
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ServiceNow (NOW - Free Report) closed at $597.13 in the latest trading session, marking a +0.8% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.71%. Meanwhile, the Dow gained 1.06%, and the Nasdaq, a tech-heavy index, added 4.62%.
Heading into today, shares of the maker of software that automates companies' technology operations had gained 4.76% over the past month, outpacing the Computer and Technology sector's gain of 2.78% and the S&P 500's gain of 2.65% in that time.
Investors will be hoping for strength from ServiceNow as it approaches its next earnings release, which is expected to be July 26, 2023. In that report, analysts expect ServiceNow to post earnings of $2.05 per share. This would mark year-over-year growth of 26.54%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.13 billion, up 21.52% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.59 per share and revenue of $8.81 billion, which would represent changes of +26.35% and +21.63%, respectively, from the prior year.
Any recent changes to analyst estimates for ServiceNow should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 currently has a Zacks Rank of #3 (Hold).
Investors should also note ServiceNow's current valuation metrics, including its Forward P/E ratio of 61.8. This valuation marks a premium compared to its industry's average Forward P/E of 22.49.
It is also worth noting that NOW currently has a PEG ratio of 2.45. 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. Computers - IT Services stocks are, on average, holding a PEG ratio of 2.23 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 108, putting it in the top 43% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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ServiceNow (NOW) Outpaces Stock Market Gains: What You Should Know
ServiceNow (NOW - Free Report) closed at $597.13 in the latest trading session, marking a +0.8% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.71%. Meanwhile, the Dow gained 1.06%, and the Nasdaq, a tech-heavy index, added 4.62%.
Heading into today, shares of the maker of software that automates companies' technology operations had gained 4.76% over the past month, outpacing the Computer and Technology sector's gain of 2.78% and the S&P 500's gain of 2.65% in that time.
Investors will be hoping for strength from ServiceNow as it approaches its next earnings release, which is expected to be July 26, 2023. In that report, analysts expect ServiceNow to post earnings of $2.05 per share. This would mark year-over-year growth of 26.54%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.13 billion, up 21.52% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.59 per share and revenue of $8.81 billion, which would represent changes of +26.35% and +21.63%, respectively, from the prior year.
Any recent changes to analyst estimates for ServiceNow should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 currently has a Zacks Rank of #3 (Hold).
Investors should also note ServiceNow's current valuation metrics, including its Forward P/E ratio of 61.8. This valuation marks a premium compared to its industry's average Forward P/E of 22.49.
It is also worth noting that NOW currently has a PEG ratio of 2.45. 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. Computers - IT Services stocks are, on average, holding a PEG ratio of 2.23 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 108, putting it in the top 43% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.