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ServiceNow (NOW) Advances While Market Declines: Some Information for Investors
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In the latest trading session, ServiceNow (NOW - Free Report) closed at $559.98, marking a +1.69% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.85%. At the same time, the Dow lost 0.75%, and the tech-heavy Nasdaq lost 0.96%.
The the stock of maker of software that automates companies' technology operations has fallen by 3.48% in the past month, lagging the Computer and Technology sector's loss of 2.07% and the S&P 500's loss of 3.02%.
The investment community will be closely monitoring the performance of ServiceNow in its forthcoming earnings report. The company is scheduled to release its earnings on October 25, 2023. The company is forecasted to report an EPS of $2.54, showcasing a 29.59% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $2.27 billion, indicating a 24.09% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.99 per share and a revenue of $8.9 billion, representing changes of +31.62% and +22.84%, respectively, from the prior 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. ServiceNow presently features a Zacks Rank of #3 (Hold).
In terms of valuation, ServiceNow is presently being traded at a Forward P/E ratio of 55.13. This valuation marks a premium compared to its industry's average Forward P/E of 24.17.
We can also see that NOW currently has a PEG ratio of 1.99. 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 2.21.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 37, placing it within the top 15% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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ServiceNow (NOW) Advances While Market Declines: Some Information for Investors
In the latest trading session, ServiceNow (NOW - Free Report) closed at $559.98, marking a +1.69% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.85%. At the same time, the Dow lost 0.75%, and the tech-heavy Nasdaq lost 0.96%.
The the stock of maker of software that automates companies' technology operations has fallen by 3.48% in the past month, lagging the Computer and Technology sector's loss of 2.07% and the S&P 500's loss of 3.02%.
The investment community will be closely monitoring the performance of ServiceNow in its forthcoming earnings report. The company is scheduled to release its earnings on October 25, 2023. The company is forecasted to report an EPS of $2.54, showcasing a 29.59% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $2.27 billion, indicating a 24.09% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.99 per share and a revenue of $8.9 billion, representing changes of +31.62% and +22.84%, respectively, from the prior 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. ServiceNow presently features a Zacks Rank of #3 (Hold).
In terms of valuation, ServiceNow is presently being traded at a Forward P/E ratio of 55.13. This valuation marks a premium compared to its industry's average Forward P/E of 24.17.
We can also see that NOW currently has a PEG ratio of 1.99. 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 2.21.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 37, placing it within the top 15% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.