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ServiceNow (NOW) Suffers a Larger Drop Than the General Market: Key Insights
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ServiceNow (NOW - Free Report) ended the recent trading session at $776.88, demonstrating a -1.61% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.19%. Elsewhere, the Dow saw an upswing of 0.1%, while the tech-heavy Nasdaq depreciated by 0.54%.
The maker of software that automates companies' technology operations's shares have seen an increase of 2.04% over the last month, not keeping up with the Computer and Technology sector's gain of 2.36% and the S&P 500's gain of 3.18%.
Investors will be eagerly watching for the performance of ServiceNow in its upcoming earnings disclosure. The company is expected to report EPS of $3.13, up 32.07% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $2.58 billion, indicating a 23.2% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.18 per share and revenue of $10.86 billion. These totals would mark changes of +22.26% and +21.08%, 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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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. Currently, ServiceNow is carrying a Zacks Rank of #2 (Buy).
From a valuation perspective, ServiceNow is currently exchanging hands at a Forward P/E ratio of 59.91. For comparison, its industry has an average Forward P/E of 28.72, which means ServiceNow is trading at a premium to the group.
It's also important to note that NOW currently trades at a PEG ratio of 2.33. 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 was holding an average PEG ratio of 2.52 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 63, this industry ranks in the top 25% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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) Suffers a Larger Drop Than the General Market: Key Insights
ServiceNow (NOW - Free Report) ended the recent trading session at $776.88, demonstrating a -1.61% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.19%. Elsewhere, the Dow saw an upswing of 0.1%, while the tech-heavy Nasdaq depreciated by 0.54%.
The maker of software that automates companies' technology operations's shares have seen an increase of 2.04% over the last month, not keeping up with the Computer and Technology sector's gain of 2.36% and the S&P 500's gain of 3.18%.
Investors will be eagerly watching for the performance of ServiceNow in its upcoming earnings disclosure. The company is expected to report EPS of $3.13, up 32.07% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $2.58 billion, indicating a 23.2% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.18 per share and revenue of $10.86 billion. These totals would mark changes of +22.26% and +21.08%, 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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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. Currently, ServiceNow is carrying a Zacks Rank of #2 (Buy).
From a valuation perspective, ServiceNow is currently exchanging hands at a Forward P/E ratio of 59.91. For comparison, its industry has an average Forward P/E of 28.72, which means ServiceNow is trading at a premium to the group.
It's also important to note that NOW currently trades at a PEG ratio of 2.33. 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 was holding an average PEG ratio of 2.52 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 63, this industry ranks in the top 25% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.