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ServiceNow (NOW) Rises Higher Than Market: Key Facts
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ServiceNow (NOW - Free Report) closed the most recent trading day at $773.18, moving +0.73% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.32%. On the other hand, the Dow registered a gain of 0.68%, and the technology-centric Nasdaq increased by 0.2%.
Shares of the maker of software that automates companies' technology operations witnessed a gain of 2.62% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 6.04% and the S&P 500's gain of 5.11%.
The investment community will be closely monitoring the performance of ServiceNow in its forthcoming earnings report. The company is predicted to post an EPS of $3.13, indicating a 32.07% growth compared to the equivalent quarter last 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.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.18 per share and a revenue of $10.86 billion, indicating changes of +22.26% and +21.08%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for ServiceNow. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ServiceNow is holding a Zacks Rank of #2 (Buy) right now.
With respect to valuation, ServiceNow is currently being traded at a Forward P/E ratio of 58.24. This expresses a premium compared to the average Forward P/E of 26.82 of its industry.
We can additionally observe that NOW currently boasts a PEG ratio of 2.27. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Computers - IT Services industry held an average PEG ratio of 2.43.
The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 59, positioning it in the top 24% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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ServiceNow (NOW) Rises Higher Than Market: Key Facts
ServiceNow (NOW - Free Report) closed the most recent trading day at $773.18, moving +0.73% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.32%. On the other hand, the Dow registered a gain of 0.68%, and the technology-centric Nasdaq increased by 0.2%.
Shares of the maker of software that automates companies' technology operations witnessed a gain of 2.62% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 6.04% and the S&P 500's gain of 5.11%.
The investment community will be closely monitoring the performance of ServiceNow in its forthcoming earnings report. The company is predicted to post an EPS of $3.13, indicating a 32.07% growth compared to the equivalent quarter last 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.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.18 per share and a revenue of $10.86 billion, indicating changes of +22.26% and +21.08%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for ServiceNow. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ServiceNow is holding a Zacks Rank of #2 (Buy) right now.
With respect to valuation, ServiceNow is currently being traded at a Forward P/E ratio of 58.24. This expresses a premium compared to the average Forward P/E of 26.82 of its industry.
We can additionally observe that NOW currently boasts a PEG ratio of 2.27. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Computers - IT Services industry held an average PEG ratio of 2.43.
The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 59, positioning it in the top 24% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.