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ServiceNow (NOW) Outpaces Stock Market Gains: What You Should Know
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ServiceNow (NOW - Free Report) closed the most recent trading day at $285.42, moving +0.98% from the previous trading session. This change outpaced the S&P 500's 0.3% gain on the day. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.42%.
Coming into today, shares of the maker of software that automates companies' technology operations had gained 4.21% in the past month. In that same time, the Computer and Technology sector gained 0.55%, while the S&P 500 gained 2.2%.
NOW will be looking to display strength as it nears its next earnings release. On that day, NOW is projected to report earnings of $0.64 per share, which would represent year-over-year growth of 30.61%. Our most recent consensus estimate is calling for quarterly revenue of $830.81 million, up 31.65% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.20 per share and revenue of $3.44 billion, which would represent changes of +28.51% and +32.03%, respectively, from the prior year.
Any recent changes to analyst estimates for NOW should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. NOW currently has a Zacks Rank of #3 (Hold).
Digging into valuation, NOW currently has a Forward P/E ratio of 88.31. This valuation marks a premium compared to its industry's average Forward P/E of 18.84.
It is also worth noting that NOW currently has a PEG ratio of 3.15. 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. NOW's industry had an average PEG ratio of 1.69 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 152, putting it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks 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) Outpaces Stock Market Gains: What You Should Know
ServiceNow (NOW - Free Report) closed the most recent trading day at $285.42, moving +0.98% from the previous trading session. This change outpaced the S&P 500's 0.3% gain on the day. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.42%.
Coming into today, shares of the maker of software that automates companies' technology operations had gained 4.21% in the past month. In that same time, the Computer and Technology sector gained 0.55%, while the S&P 500 gained 2.2%.
NOW will be looking to display strength as it nears its next earnings release. On that day, NOW is projected to report earnings of $0.64 per share, which would represent year-over-year growth of 30.61%. Our most recent consensus estimate is calling for quarterly revenue of $830.81 million, up 31.65% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.20 per share and revenue of $3.44 billion, which would represent changes of +28.51% and +32.03%, respectively, from the prior year.
Any recent changes to analyst estimates for NOW should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. NOW currently has a Zacks Rank of #3 (Hold).
Digging into valuation, NOW currently has a Forward P/E ratio of 88.31. This valuation marks a premium compared to its industry's average Forward P/E of 18.84.
It is also worth noting that NOW currently has a PEG ratio of 3.15. 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. NOW's industry had an average PEG ratio of 1.69 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 152, putting it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks 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.