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ServiceNow (NOW) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, ServiceNow (NOW - Free Report) closed at $582.02, marking a +0.54% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.03%. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq lost 1.37%.
Heading into today, shares of the maker of software that automates companies' technology operations had gained 5.28% over the past month, outpacing the Computer and Technology sector's gain of 1.16% and the S&P 500's gain of 3.43% 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 July 26, 2023. On that day, ServiceNow is projected to report earnings of $2.05 per share, which would represent 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.
NOW's full-year Zacks Consensus Estimates are calling for earnings of $9.59 per share and revenue of $8.81 billion. These results would represent year-over-year changes of +26.35% and +21.63%, respectively.
It is also important to note the recent changes to analyst estimates for ServiceNow. These revisions help to show the ever-changing nature of near-term business trends. 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. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ServiceNow is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that ServiceNow has a Forward P/E ratio of 60.39 right now. For comparison, its industry has an average Forward P/E of 21.27, which means ServiceNow is trading at a premium to the group.
Also, we should mention that NOW has a PEG ratio of 2.4. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computers - IT Services was holding an average PEG ratio of 2.17 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 113, which puts it in the top 45% 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
In the latest trading session, ServiceNow (NOW - Free Report) closed at $582.02, marking a +0.54% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.03%. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq lost 1.37%.
Heading into today, shares of the maker of software that automates companies' technology operations had gained 5.28% over the past month, outpacing the Computer and Technology sector's gain of 1.16% and the S&P 500's gain of 3.43% 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 July 26, 2023. On that day, ServiceNow is projected to report earnings of $2.05 per share, which would represent 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.
NOW's full-year Zacks Consensus Estimates are calling for earnings of $9.59 per share and revenue of $8.81 billion. These results would represent year-over-year changes of +26.35% and +21.63%, respectively.
It is also important to note the recent changes to analyst estimates for ServiceNow. These revisions help to show the ever-changing nature of near-term business trends. 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. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ServiceNow is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that ServiceNow has a Forward P/E ratio of 60.39 right now. For comparison, its industry has an average Forward P/E of 21.27, which means ServiceNow is trading at a premium to the group.
Also, we should mention that NOW has a PEG ratio of 2.4. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computers - IT Services was holding an average PEG ratio of 2.17 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 113, which puts it in the top 45% 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.