We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ServiceNow (NOW) Surpasses Market Returns: Some Facts Worth Knowing
Read MoreHide Full Article
ServiceNow (NOW - Free Report) closed the most recent trading day at $947.79, moving +2.03% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.47%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq added 0.94%.
Shares of the maker of software that automates companies' technology operations witnessed a gain of 7.12% over the previous month, beating the performance of the Computer and Technology sector with its gain of 3.88%, and the S&P 500's gain of 2.32%.
The investment community will be paying close attention to the earnings performance of ServiceNow in its upcoming release. In that report, analysts expect ServiceNow to post earnings of $4.22 per share. This would mark year-over-year growth of 13.44%. 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.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $16.81 per share and a revenue of $13.14 billion, indicating changes of +20.76% and +19.64%, respectively, from the former year.
It is also important to note the recent changes 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.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. ServiceNow presently features a Zacks Rank of #3 (Hold).
In the context of valuation, ServiceNow is at present trading with a Forward P/E ratio of 55.28. This indicates a premium in contrast to its industry's Forward P/E of 17.17.
We can also see that NOW currently has a PEG ratio of 2.32. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Computers - IT Services industry held an average PEG ratio of 2.05.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 149, placing it within the bottom 40% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ServiceNow (NOW) Surpasses Market Returns: Some Facts Worth Knowing
ServiceNow (NOW - Free Report) closed the most recent trading day at $947.79, moving +2.03% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.47%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq added 0.94%.
Shares of the maker of software that automates companies' technology operations witnessed a gain of 7.12% over the previous month, beating the performance of the Computer and Technology sector with its gain of 3.88%, and the S&P 500's gain of 2.32%.
The investment community will be paying close attention to the earnings performance of ServiceNow in its upcoming release. In that report, analysts expect ServiceNow to post earnings of $4.22 per share. This would mark year-over-year growth of 13.44%. 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.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $16.81 per share and a revenue of $13.14 billion, indicating changes of +20.76% and +19.64%, respectively, from the former year.
It is also important to note the recent changes 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.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. ServiceNow presently features a Zacks Rank of #3 (Hold).
In the context of valuation, ServiceNow is at present trading with a Forward P/E ratio of 55.28. This indicates a premium in contrast to its industry's Forward P/E of 17.17.
We can also see that NOW currently has a PEG ratio of 2.32. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Computers - IT Services industry held an average PEG ratio of 2.05.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 149, placing it within the bottom 40% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.