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ServiceNow (NOW) Exceeds Market Returns: Some Facts to Consider
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ServiceNow (NOW - Free Report) ended the recent trading session at $114.19, demonstrating a +1.55% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.3%. Elsewhere, the Dow saw a downswing of 0.16%, while the tech-heavy Nasdaq appreciated by 0.86%.
The maker of software that automates companies' technology operations's shares have seen an increase of 23.33% over the last month, surpassing the Computer and Technology sector's gain of 3.7% and the S&P 500's gain of 1.92%.
The upcoming earnings release of ServiceNow will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.86, reflecting a 4.88% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $3.92 billion, up 22% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.14 per share and a revenue of $16.18 billion, signifying shifts of +17.95% and +21.88%, respectively, from the last 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, ServiceNow is carrying a Zacks Rank of #4 (Sell).
Looking at valuation, ServiceNow is presently trading at a Forward P/E ratio of 27.18. This represents a premium compared to its industry average Forward P/E of 14.18.
Also, we should mention that NOW has a PEG ratio of 1.06. 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 1.11 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 187, this industry ranks in the bottom 24% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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) Exceeds Market Returns: Some Facts to Consider
ServiceNow (NOW - Free Report) ended the recent trading session at $114.19, demonstrating a +1.55% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.3%. Elsewhere, the Dow saw a downswing of 0.16%, while the tech-heavy Nasdaq appreciated by 0.86%.
The maker of software that automates companies' technology operations's shares have seen an increase of 23.33% over the last month, surpassing the Computer and Technology sector's gain of 3.7% and the S&P 500's gain of 1.92%.
The upcoming earnings release of ServiceNow will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.86, reflecting a 4.88% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $3.92 billion, up 22% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.14 per share and a revenue of $16.18 billion, signifying shifts of +17.95% and +21.88%, respectively, from the last 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, ServiceNow is carrying a Zacks Rank of #4 (Sell).
Looking at valuation, ServiceNow is presently trading at a Forward P/E ratio of 27.18. This represents a premium compared to its industry average Forward P/E of 14.18.
Also, we should mention that NOW has a PEG ratio of 1.06. 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 1.11 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 187, this industry ranks in the bottom 24% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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.