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ServiceNow (NOW) Increases Despite Market Slip: Here's What You Need to Know
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In the latest market close, ServiceNow (NOW - Free Report) reached $779.49, with a +0.34% movement compared to the previous day. This move outpaced the S&P 500's daily loss of 0.29%. Elsewhere, the Dow saw a downswing of 0.35%, while the tech-heavy Nasdaq depreciated by 0.3%.
Coming into today, shares of the maker of software that automates companies' technology operations had lost 1.91% in the past month. In that same time, the Computer and Technology sector gained 3.61%, while the S&P 500 gained 4.42%.
Analysts and investors alike will be keeping a close eye on the performance of ServiceNow in its upcoming earnings disclosure. The company's upcoming EPS is projected at $3.13, signifying a 32.07% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.58 billion, indicating a 23.2% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $13.18 per share and a revenue of $10.86 billion, demonstrating changes of +22.26% and +21.08%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ServiceNow currently has a Zacks Rank of #2 (Buy).
With respect to valuation, ServiceNow is currently being traded at a Forward P/E ratio of 58.94. This valuation marks a premium compared to its industry's average Forward P/E of 27.48.
Meanwhile, NOW's PEG ratio is currently 2.29. 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. As the market closed yesterday, the Computers - IT Services industry was having an average PEG ratio of 2.51.
The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 63, positioning it in the top 25% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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ServiceNow (NOW) Increases Despite Market Slip: Here's What You Need to Know
In the latest market close, ServiceNow (NOW - Free Report) reached $779.49, with a +0.34% movement compared to the previous day. This move outpaced the S&P 500's daily loss of 0.29%. Elsewhere, the Dow saw a downswing of 0.35%, while the tech-heavy Nasdaq depreciated by 0.3%.
Coming into today, shares of the maker of software that automates companies' technology operations had lost 1.91% in the past month. In that same time, the Computer and Technology sector gained 3.61%, while the S&P 500 gained 4.42%.
Analysts and investors alike will be keeping a close eye on the performance of ServiceNow in its upcoming earnings disclosure. The company's upcoming EPS is projected at $3.13, signifying a 32.07% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.58 billion, indicating a 23.2% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $13.18 per share and a revenue of $10.86 billion, demonstrating changes of +22.26% and +21.08%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ServiceNow currently has a Zacks Rank of #2 (Buy).
With respect to valuation, ServiceNow is currently being traded at a Forward P/E ratio of 58.94. This valuation marks a premium compared to its industry's average Forward P/E of 27.48.
Meanwhile, NOW's PEG ratio is currently 2.29. 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. As the market closed yesterday, the Computers - IT Services industry was having an average PEG ratio of 2.51.
The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 63, positioning it in the top 25% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.