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ServiceNow (NOW) Rises Higher Than Market: Key Facts
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In the latest trading session, ServiceNow (NOW - Free Report) closed at $1,147.18, marking a +1.71% move from the previous day. This change outpaced the S&P 500's 0.82% gain on the day. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 1.77%.
Shares of the maker of software that automates companies' technology operations witnessed a gain of 7.59% over the previous month, beating the performance of the Computer and Technology sector with its gain of 1.43% and the S&P 500's gain of 0.8%.
Analysts and investors alike will be keeping a close eye on the performance of ServiceNow in its upcoming earnings disclosure. The company is predicted to post an EPS of $3.60, indicating a 15.76% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $2.96 billion, indicating a 21.28% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.87 per share and a revenue of $10.97 billion, representing changes of +28.66% and +22.33%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for ServiceNow. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, ServiceNow boasts a Zacks Rank of #2 (Buy).
In terms of valuation, ServiceNow is currently trading at a Forward P/E ratio of 81.32. Its industry sports an average Forward P/E of 30.13, so one might conclude that ServiceNow is trading at a premium comparatively.
Investors should also note that NOW has a PEG ratio of 3.3 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Computers - IT Services industry held an average PEG ratio of 2.86.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 44, which puts it in the top 18% 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.
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) Rises Higher Than Market: Key Facts
In the latest trading session, ServiceNow (NOW - Free Report) closed at $1,147.18, marking a +1.71% move from the previous day. This change outpaced the S&P 500's 0.82% gain on the day. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 1.77%.
Shares of the maker of software that automates companies' technology operations witnessed a gain of 7.59% over the previous month, beating the performance of the Computer and Technology sector with its gain of 1.43% and the S&P 500's gain of 0.8%.
Analysts and investors alike will be keeping a close eye on the performance of ServiceNow in its upcoming earnings disclosure. The company is predicted to post an EPS of $3.60, indicating a 15.76% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $2.96 billion, indicating a 21.28% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.87 per share and a revenue of $10.97 billion, representing changes of +28.66% and +22.33%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for ServiceNow. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, ServiceNow boasts a Zacks Rank of #2 (Buy).
In terms of valuation, ServiceNow is currently trading at a Forward P/E ratio of 81.32. Its industry sports an average Forward P/E of 30.13, so one might conclude that ServiceNow is trading at a premium comparatively.
Investors should also note that NOW has a PEG ratio of 3.3 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Computers - IT Services industry held an average PEG ratio of 2.86.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 44, which puts it in the top 18% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.