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ServiceNow (NOW) Surpasses Market Returns: Some Facts Worth Knowing
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ServiceNow (NOW - Free Report) closed the most recent trading day at $940.34, moving +2.9% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.21%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 0.45%.
The stock of maker of software that automates companies' technology operations has risen by 4.73% in the past month, leading the Computer and Technology sector's gain of 4.48% and the S&P 500's gain of 3.07%.
The investment community will be closely monitoring the performance of ServiceNow in its forthcoming earnings report. The company's upcoming EPS is projected at $4.22, signifying a 13.44% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $3.35 billion, reflecting a 19.88% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $16.79 per share and revenue of $13.14 billion, which would represent changes of +20.62% and +19.64%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for ServiceNow. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.1% lower. ServiceNow is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note ServiceNow's current valuation metrics, including its Forward P/E ratio of 54.42. Its industry sports an average Forward P/E of 16.27, so one might conclude that ServiceNow is trading at a premium comparatively.
Meanwhile, NOW's PEG ratio is currently 2.28. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computers - IT Services was holding an average PEG ratio of 2.19 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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ServiceNow (NOW) Surpasses Market Returns: Some Facts Worth Knowing
ServiceNow (NOW - Free Report) closed the most recent trading day at $940.34, moving +2.9% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.21%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 0.45%.
The stock of maker of software that automates companies' technology operations has risen by 4.73% in the past month, leading the Computer and Technology sector's gain of 4.48% and the S&P 500's gain of 3.07%.
The investment community will be closely monitoring the performance of ServiceNow in its forthcoming earnings report. The company's upcoming EPS is projected at $4.22, signifying a 13.44% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $3.35 billion, reflecting a 19.88% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $16.79 per share and revenue of $13.14 billion, which would represent changes of +20.62% and +19.64%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for ServiceNow. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.1% lower. ServiceNow is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note ServiceNow's current valuation metrics, including its Forward P/E ratio of 54.42. Its industry sports an average Forward P/E of 16.27, so one might conclude that ServiceNow is trading at a premium comparatively.
Meanwhile, NOW's PEG ratio is currently 2.28. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computers - IT Services was holding an average PEG ratio of 2.19 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.