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ServiceNow (NOW) Stock Falls Amid Market Uptick: What Investors Need to Know
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In the latest close session, ServiceNow (NOW - Free Report) was down 2.17% at $135.47. The stock fell short of the S&P 500, which registered a gain of 0.17% for the day. Elsewhere, the Dow lost 0.18%, while the tech-heavy Nasdaq added 0.4%.
Shares of the maker of software that automates companies' technology operations witnessed a gain of 6.72% over the previous month, beating the performance of the Computer and Technology sector with its gain of 0.37%, and the S&P 500's loss of 1.29%.
The investment community will be paying close attention to the earnings performance of ServiceNow in its upcoming release. The company is expected to report EPS of $1.03, up 7.29% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.1 billion, up 20.27% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.06 per share and revenue of $16.2 billion. These totals would mark changes of +15.67% and +22.02%, respectively, from last year.
Any recent changes to analyst estimates for ServiceNow should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. ServiceNow currently has a Zacks Rank of #4 (Sell).
From a valuation perspective, ServiceNow is currently exchanging hands at a Forward P/E ratio of 34.1. This expresses a premium compared to the average Forward P/E of 13.72 of its industry.
Also, we should mention that NOW has a PEG ratio of 1.39. 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 average PEG ratio for the Computers - IT Services industry stood at 1.39 at the close of the market yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 149, placing it within the bottom 40% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
View the Zacks #1 Rank List
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ServiceNow (NOW) Stock Falls Amid Market Uptick: What Investors Need to Know
In the latest close session, ServiceNow (NOW - Free Report) was down 2.17% at $135.47. The stock fell short of the S&P 500, which registered a gain of 0.17% for the day. Elsewhere, the Dow lost 0.18%, while the tech-heavy Nasdaq added 0.4%.
Shares of the maker of software that automates companies' technology operations witnessed a gain of 6.72% over the previous month, beating the performance of the Computer and Technology sector with its gain of 0.37%, and the S&P 500's loss of 1.29%.
The investment community will be paying close attention to the earnings performance of ServiceNow in its upcoming release. The company is expected to report EPS of $1.03, up 7.29% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.1 billion, up 20.27% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.06 per share and revenue of $16.2 billion. These totals would mark changes of +15.67% and +22.02%, respectively, from last year.
Any recent changes to analyst estimates for ServiceNow should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. ServiceNow currently has a Zacks Rank of #4 (Sell).
From a valuation perspective, ServiceNow is currently exchanging hands at a Forward P/E ratio of 34.1. This expresses a premium compared to the average Forward P/E of 13.72 of its industry.
Also, we should mention that NOW has a PEG ratio of 1.39. 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 average PEG ratio for the Computers - IT Services industry stood at 1.39 at the close of the market yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 149, placing it within the bottom 40% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.