ServiceNow (NOW - Free Report) closed at $411.74 in the latest trading session, marking a -1.13% move from the prior day. This change lagged the S&P 500's daily loss of 1.08%. Meanwhile, the Dow lost 1.51%, and the Nasdaq, a tech-heavy index, lost 0.86%.
Prior to today's trading, shares of the maker of software that automates companies' technology operations had gained 7.71% over the past month. This has outpaced the Computer and Technology sector's gain of 5.89% and the S&P 500's loss of 0.3% in that time.
Investors will be hoping for strength from NOW as it approaches its next earnings release. In that report, analysts expect NOW to post earnings of $1.02 per share. This would mark year-over-year growth of 43.66%. Our most recent consensus estimate is calling for quarterly revenue of $1.05 billion, up 25.58% from the year-ago period.
NOW's full-year Zacks Consensus Estimates are calling for earnings of $4.24 per share and revenue of $4.34 billion. These results would represent year-over-year changes of +27.71% and +25.49%, respectively.
It is also important to note the recent changes to analyst estimates for NOW. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 past month, the Zacks Consensus EPS estimate remained stagnant. NOW is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, NOW is holding a Forward P/E ratio of 98.11. Its industry sports an average Forward P/E of 36.59, so we one might conclude that NOW is trading at a premium comparatively.
We can also see that NOW currently has a PEG ratio of 3.47. 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 2.06 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 207, putting it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.