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ServiceNow (NOW) Outperforms Broader Market: What You Need to Know
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The latest trading session saw ServiceNow (NOW - Free Report) ending at $746.99, denoting a +1.52% adjustment from its last day's close. The stock outpaced the S&P 500's daily gain of 0.03%. Elsewhere, the Dow gained 0.41%, while the tech-heavy Nasdaq added 0.12%.
The maker of software that automates companies' technology operations's stock has dropped by 2.64% in the past month, falling short of the Computer and Technology sector's loss of 0.55% and the S&P 500's loss of 0.9%.
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 April 24, 2024. The company is forecasted to report an EPS of $3.15, showcasing a 32.91% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $2.58 billion, indicating a 23.22% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $13.27 per share and revenue of $10.86 billion, indicating changes of +23.1% and +21.09%, respectively, compared to the previous 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% decrease. Right now, ServiceNow possesses a Zacks Rank of #4 (Sell).
In the context of valuation, ServiceNow is at present trading with a Forward P/E ratio of 55.46. This denotes a premium relative to the industry's average Forward P/E of 24.07.
Also, we should mention that NOW has a PEG ratio of 2.16. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. NOW's industry had an average PEG ratio of 2.16 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 30% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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ServiceNow (NOW) Outperforms Broader Market: What You Need to Know
The latest trading session saw ServiceNow (NOW - Free Report) ending at $746.99, denoting a +1.52% adjustment from its last day's close. The stock outpaced the S&P 500's daily gain of 0.03%. Elsewhere, the Dow gained 0.41%, while the tech-heavy Nasdaq added 0.12%.
The maker of software that automates companies' technology operations's stock has dropped by 2.64% in the past month, falling short of the Computer and Technology sector's loss of 0.55% and the S&P 500's loss of 0.9%.
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 April 24, 2024. The company is forecasted to report an EPS of $3.15, showcasing a 32.91% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $2.58 billion, indicating a 23.22% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $13.27 per share and revenue of $10.86 billion, indicating changes of +23.1% and +21.09%, respectively, compared to the previous 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% decrease. Right now, ServiceNow possesses a Zacks Rank of #4 (Sell).
In the context of valuation, ServiceNow is at present trading with a Forward P/E ratio of 55.46. This denotes a premium relative to the industry's average Forward P/E of 24.07.
Also, we should mention that NOW has a PEG ratio of 2.16. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. NOW's industry had an average PEG ratio of 2.16 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 30% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.