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.
Here's Why ServiceNow (NOW) Fell More Than Broader Market
Read MoreHide Full Article
ServiceNow (NOW - Free Report) closed the most recent trading day at $104.65, moving -5.68% from the previous trading session. This change lagged the S&P 500's 0.37% loss on the day. Elsewhere, the Dow saw a downswing of 0.18%, while the tech-heavy Nasdaq depreciated by 0.84%.
Coming into today, shares of the maker of software that automates companies' technology operations had gained 10.07% in the past month. In that same time, the Computer and Technology sector lost 2.83%, while the S&P 500 lost 3.7%.
Investors will be eagerly watching for the performance of ServiceNow in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.95, signifying a 17.28% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.75 billion, indicating a 21.39% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.12 per share and revenue of $15.98 billion, indicating changes of +17.38% and +20.31%, respectively, compared to the previous 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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. ServiceNow is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that ServiceNow has a Forward P/E ratio of 26.93 right now. Its industry sports an average Forward P/E of 13.15, so one might conclude that ServiceNow is trading at a premium comparatively.
One should further note that NOW currently holds a PEG ratio of 1.12. 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 the market closed yesterday, the Computers - IT Services industry was having an average PEG ratio of 1.13.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 79, which puts it in the top 33% 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.
To follow NOW in the coming trading sessions, be sure to utilize Zacks.com.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Here's Why ServiceNow (NOW) Fell More Than Broader Market
ServiceNow (NOW - Free Report) closed the most recent trading day at $104.65, moving -5.68% from the previous trading session. This change lagged the S&P 500's 0.37% loss on the day. Elsewhere, the Dow saw a downswing of 0.18%, while the tech-heavy Nasdaq depreciated by 0.84%.
Coming into today, shares of the maker of software that automates companies' technology operations had gained 10.07% in the past month. In that same time, the Computer and Technology sector lost 2.83%, while the S&P 500 lost 3.7%.
Investors will be eagerly watching for the performance of ServiceNow in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.95, signifying a 17.28% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.75 billion, indicating a 21.39% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.12 per share and revenue of $15.98 billion, indicating changes of +17.38% and +20.31%, respectively, compared to the previous 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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. ServiceNow is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that ServiceNow has a Forward P/E ratio of 26.93 right now. Its industry sports an average Forward P/E of 13.15, so one might conclude that ServiceNow is trading at a premium comparatively.
One should further note that NOW currently holds a PEG ratio of 1.12. 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 the market closed yesterday, the Computers - IT Services industry was having an average PEG ratio of 1.13.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 79, which puts it in the top 33% 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.
To follow NOW in the coming trading sessions, be sure to utilize Zacks.com.