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.
ServiceNow (NOW) Dips More Than Broader Market: What You Should Know
Read MoreHide Full Article
In the latest close session, ServiceNow (NOW - Free Report) was down 2.13% at $137.78. The stock fell short of the S&P 500, which registered a loss of 0.03% for the day. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq added 0.01%.
Heading into today, shares of the maker of software that automates companies' technology operations had gained 11.91% over the past month, outpacing the Computer and Technology sector's gain of 5.26% and the S&P 500's gain of 0.53%.
Analysts and investors alike will be keeping a close eye on the performance of ServiceNow in its upcoming earnings disclosure. The company is expected to report EPS of $1.03, up 7.29% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.1 billion, up 20.27% from the year-ago period.
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.
Investors should also pay attention to any latest changes in analyst estimates for ServiceNow. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. ServiceNow is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, ServiceNow is at present trading with a Forward P/E ratio of 34.67. This indicates a premium in contrast to its industry's Forward P/E of 13.38.
It is also worth noting that NOW currently has a PEG ratio of 1.42. 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 was holding an average PEG ratio of 1.4 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 39% of all 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
Image: Bigstock
ServiceNow (NOW) Dips More Than Broader Market: What You Should Know
In the latest close session, ServiceNow (NOW - Free Report) was down 2.13% at $137.78. The stock fell short of the S&P 500, which registered a loss of 0.03% for the day. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq added 0.01%.
Heading into today, shares of the maker of software that automates companies' technology operations had gained 11.91% over the past month, outpacing the Computer and Technology sector's gain of 5.26% and the S&P 500's gain of 0.53%.
Analysts and investors alike will be keeping a close eye on the performance of ServiceNow in its upcoming earnings disclosure. The company is expected to report EPS of $1.03, up 7.29% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.1 billion, up 20.27% from the year-ago period.
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.
Investors should also pay attention to any latest changes in analyst estimates for ServiceNow. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. ServiceNow is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, ServiceNow is at present trading with a Forward P/E ratio of 34.67. This indicates a premium in contrast to its industry's Forward P/E of 13.38.
It is also worth noting that NOW currently has a PEG ratio of 1.42. 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 was holding an average PEG ratio of 1.4 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 39% of all 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 follow all of these stock-moving metrics, and many more, on Zacks.com.