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ServiceNow (NOW) Beats Stock Market Upswing: What Investors Need to Know
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ServiceNow (NOW - Free Report) closed the most recent trading day at $104.15, moving +1.96% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 1.65% for the day. Meanwhile, the Dow gained 0.92%, and the Nasdaq, a tech-heavy index, added 3.07%.
The stock of maker of software that automates companies' technology operations has risen by 7.45% in the past month, leading the Computer and Technology sector's gain of 0.33% and the S&P 500's gain of 0.48%.
The investment community will be paying close attention to the earnings performance of ServiceNow in its upcoming release. The company's earnings per share (EPS) are projected to be $0.86, reflecting a 4.88% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $3.92 billion, reflecting a 22% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $4.14 per share and a revenue of $16.18 billion, demonstrating changes of +17.95% and +21.88%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for ServiceNow. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 remained unchanged. As of now, ServiceNow holds a Zacks Rank of #4 (Sell).
Looking at its valuation, ServiceNow is holding a Forward P/E ratio of 24.69. This signifies a premium in comparison to the average Forward P/E of 14.15 for its industry.
Investors should also note that NOW has a PEG ratio of 0.96 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computers - IT Services industry currently had an average PEG ratio of 1.16 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 180, finds itself in the bottom 27% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
View the Zacks #1 Rank List
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ServiceNow (NOW) Beats Stock Market Upswing: What Investors Need to Know
ServiceNow (NOW - Free Report) closed the most recent trading day at $104.15, moving +1.96% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 1.65% for the day. Meanwhile, the Dow gained 0.92%, and the Nasdaq, a tech-heavy index, added 3.07%.
The stock of maker of software that automates companies' technology operations has risen by 7.45% in the past month, leading the Computer and Technology sector's gain of 0.33% and the S&P 500's gain of 0.48%.
The investment community will be paying close attention to the earnings performance of ServiceNow in its upcoming release. The company's earnings per share (EPS) are projected to be $0.86, reflecting a 4.88% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $3.92 billion, reflecting a 22% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $4.14 per share and a revenue of $16.18 billion, demonstrating changes of +17.95% and +21.88%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for ServiceNow. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 remained unchanged. As of now, ServiceNow holds a Zacks Rank of #4 (Sell).
Looking at its valuation, ServiceNow is holding a Forward P/E ratio of 24.69. This signifies a premium in comparison to the average Forward P/E of 14.15 for its industry.
Investors should also note that NOW has a PEG ratio of 0.96 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computers - IT Services industry currently had an average PEG ratio of 1.16 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 180, finds itself in the bottom 27% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.