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ServiceNow (NOW) Stock Drops Despite Market Gains: Important Facts to Note
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ServiceNow (NOW - Free Report) closed the most recent trading day at $152.59, moving -1.15% from the previous trading session. This move lagged the S&P 500's daily gain of 0.32%. At the same time, the Dow added 0.6%, and the tech-heavy Nasdaq gained 0.22%.
Shares of the maker of software that automates companies' technology operations witnessed a loss of 6.48% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 5.41%, and the S&P 500's gain of 4.7%.
Investors will be eagerly watching for the performance of ServiceNow in its upcoming earnings disclosure. The company is expected to report EPS of $0.87, up 19.18% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.52 billion, up 19.19% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.46 per share and a revenue of $13.23 billion, indicating changes of +24.46% and +20.49%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for ServiceNow. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.1% increase. Currently, ServiceNow is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, ServiceNow currently has a Forward P/E ratio of 44.58. This valuation marks a premium compared to its industry average Forward P/E of 16.38.
We can additionally observe that NOW currently boasts a PEG ratio of 1.82. 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 the market closed yesterday, the Computers - IT Services industry was having an average PEG ratio of 1.82.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 93, placing it within the top 38% of over 250 industries.
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.
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) Stock Drops Despite Market Gains: Important Facts to Note
ServiceNow (NOW - Free Report) closed the most recent trading day at $152.59, moving -1.15% from the previous trading session. This move lagged the S&P 500's daily gain of 0.32%. At the same time, the Dow added 0.6%, and the tech-heavy Nasdaq gained 0.22%.
Shares of the maker of software that automates companies' technology operations witnessed a loss of 6.48% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 5.41%, and the S&P 500's gain of 4.7%.
Investors will be eagerly watching for the performance of ServiceNow in its upcoming earnings disclosure. The company is expected to report EPS of $0.87, up 19.18% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.52 billion, up 19.19% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.46 per share and a revenue of $13.23 billion, indicating changes of +24.46% and +20.49%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for ServiceNow. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.1% increase. Currently, ServiceNow is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, ServiceNow currently has a Forward P/E ratio of 44.58. This valuation marks a premium compared to its industry average Forward P/E of 16.38.
We can additionally observe that NOW currently boasts a PEG ratio of 1.82. 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 the market closed yesterday, the Computers - IT Services industry was having an average PEG ratio of 1.82.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 93, placing it within the top 38% of over 250 industries.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.