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ServiceNow (NOW) Outpaces Stock Market Gains: What You Should Know
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ServiceNow (NOW - Free Report) closed the most recent trading day at $867.49, moving +1.63% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.21%. Meanwhile, the Dow gained 1.35%, and the Nasdaq, a tech-heavy index, lost 0.26%.
Coming into today, shares of the maker of software that automates companies' technology operations had lost 1.21% in the past month. In that same time, the Computer and Technology sector gained 2.05%, while the S&P 500 gained 0.89%.
Market participants will be closely following the financial results of ServiceNow in its upcoming release. It is anticipated that the company will report an EPS of $4.35, marking a 18.53% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $3.52 billion, indicating a 19.19% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $17.31 per share and revenue of $13.23 billion. These totals would mark changes of +24.35% and +20.49%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for ServiceNow. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.12% fall in the Zacks Consensus EPS estimate. Right now, ServiceNow possesses a Zacks Rank of #3 (Hold).
Investors should also note ServiceNow's current valuation metrics, including its Forward P/E ratio of 49.32. Its industry sports an average Forward P/E of 16.72, so one might conclude that ServiceNow is trading at a premium comparatively.
It's also important to note that NOW currently trades at a PEG ratio of 2.01. 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 1.94 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 74, this industry ranks in the top 30% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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ServiceNow (NOW) Outpaces Stock Market Gains: What You Should Know
ServiceNow (NOW - Free Report) closed the most recent trading day at $867.49, moving +1.63% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.21%. Meanwhile, the Dow gained 1.35%, and the Nasdaq, a tech-heavy index, lost 0.26%.
Coming into today, shares of the maker of software that automates companies' technology operations had lost 1.21% in the past month. In that same time, the Computer and Technology sector gained 2.05%, while the S&P 500 gained 0.89%.
Market participants will be closely following the financial results of ServiceNow in its upcoming release. It is anticipated that the company will report an EPS of $4.35, marking a 18.53% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $3.52 billion, indicating a 19.19% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $17.31 per share and revenue of $13.23 billion. These totals would mark changes of +24.35% and +20.49%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for ServiceNow. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.12% fall in the Zacks Consensus EPS estimate. Right now, ServiceNow possesses a Zacks Rank of #3 (Hold).
Investors should also note ServiceNow's current valuation metrics, including its Forward P/E ratio of 49.32. Its industry sports an average Forward P/E of 16.72, so one might conclude that ServiceNow is trading at a premium comparatively.
It's also important to note that NOW currently trades at a PEG ratio of 2.01. 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 1.94 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 74, this industry ranks in the top 30% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.