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(NOW) Ascends While Market Falls: Some Facts to Note
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ServiceNow (NOW - Free Report) closed the most recent trading day at $560.15, moving +0.26% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.63%. Meanwhile, the Dow lost 0.51%, and the Nasdaq, a tech-heavy index, lost 0.63%.
Prior to today's trading, shares of the maker of software that automates companies' technology operations had lost 5.53% over the past month. This has lagged the Computer and Technology sector's loss of 1.17% and the S&P 500's loss of 2.35% in that time.
The investment community will be paying close attention to the earnings performance of ServiceNow in its upcoming release. The company is slated to reveal its earnings on October 25, 2023. The company is predicted to post an EPS of $2.54, indicating a 29.59% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $2.27 billion, reflecting a 24.09% rise from the equivalent quarter last year.
NOW's full-year Zacks Consensus Estimates are calling for earnings of $9.99 per share and revenue of $8.9 billion. These results would represent year-over-year changes of +31.62% and +22.84%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for ServiceNow. 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 utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. ServiceNow presently features a Zacks Rank of #3 (Hold).
In terms of valuation, ServiceNow is currently trading at a Forward P/E ratio of 55.93. Its industry sports an average Forward P/E of 24.82, so one might conclude that ServiceNow is trading at a premium comparatively.
It is also worth noting that NOW currently has a PEG ratio of 2.02. 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. As of the close of trade yesterday, the Computers - IT Services industry held an average PEG ratio of 2.16.
The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 40, positioning it in the top 16% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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(NOW) Ascends While Market Falls: Some Facts to Note
ServiceNow (NOW - Free Report) closed the most recent trading day at $560.15, moving +0.26% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.63%. Meanwhile, the Dow lost 0.51%, and the Nasdaq, a tech-heavy index, lost 0.63%.
Prior to today's trading, shares of the maker of software that automates companies' technology operations had lost 5.53% over the past month. This has lagged the Computer and Technology sector's loss of 1.17% and the S&P 500's loss of 2.35% in that time.
The investment community will be paying close attention to the earnings performance of ServiceNow in its upcoming release. The company is slated to reveal its earnings on October 25, 2023. The company is predicted to post an EPS of $2.54, indicating a 29.59% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $2.27 billion, reflecting a 24.09% rise from the equivalent quarter last year.
NOW's full-year Zacks Consensus Estimates are calling for earnings of $9.99 per share and revenue of $8.9 billion. These results would represent year-over-year changes of +31.62% and +22.84%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for ServiceNow. 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 utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. ServiceNow presently features a Zacks Rank of #3 (Hold).
In terms of valuation, ServiceNow is currently trading at a Forward P/E ratio of 55.93. Its industry sports an average Forward P/E of 24.82, so one might conclude that ServiceNow is trading at a premium comparatively.
It is also worth noting that NOW currently has a PEG ratio of 2.02. 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. As of the close of trade yesterday, the Computers - IT Services industry held an average PEG ratio of 2.16.
The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 40, positioning it in the top 16% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.