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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 $588.83, moving +0.1% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.16%. Meanwhile, the Dow lost 0.48%, and the Nasdaq, a tech-heavy index, added 0.11%.
Coming into today, shares of the maker of software that automates companies' technology operations had gained 4.45% in the past month. In that same time, the Computer and Technology sector lost 1.79%, while the S&P 500 lost 1.25%.
Wall Street will be looking for positivity from ServiceNow as it approaches its next earnings report date. On that day, ServiceNow is projected to report earnings of $2.54 per share, which would represent year-over-year growth of 29.59%. Our most recent consensus estimate is calling for quarterly revenue of $2.27 billion, up 24.07% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.99 per share and revenue of $8.9 billion. These totals would mark changes of +31.62% and +22.83%, 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 has moved 1.06% higher. ServiceNow is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note ServiceNow's current valuation metrics, including its Forward P/E ratio of 58.89. For comparison, its industry has an average Forward P/E of 24.51, which means ServiceNow is trading at a premium to the group.
Meanwhile, NOW's PEG ratio is currently 2.13. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computers - IT Services industry currently had an average PEG ratio of 2.16 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 103, putting it in the top 41% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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 $588.83, moving +0.1% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.16%. Meanwhile, the Dow lost 0.48%, and the Nasdaq, a tech-heavy index, added 0.11%.
Coming into today, shares of the maker of software that automates companies' technology operations had gained 4.45% in the past month. In that same time, the Computer and Technology sector lost 1.79%, while the S&P 500 lost 1.25%.
Wall Street will be looking for positivity from ServiceNow as it approaches its next earnings report date. On that day, ServiceNow is projected to report earnings of $2.54 per share, which would represent year-over-year growth of 29.59%. Our most recent consensus estimate is calling for quarterly revenue of $2.27 billion, up 24.07% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.99 per share and revenue of $8.9 billion. These totals would mark changes of +31.62% and +22.83%, 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 has moved 1.06% higher. ServiceNow is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note ServiceNow's current valuation metrics, including its Forward P/E ratio of 58.89. For comparison, its industry has an average Forward P/E of 24.51, which means ServiceNow is trading at a premium to the group.
Meanwhile, NOW's PEG ratio is currently 2.13. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computers - IT Services industry currently had an average PEG ratio of 2.16 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 103, putting it in the top 41% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.