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ServiceNow (NOW) Outpaces Stock Market Gains: What You Should Know
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ServiceNow (NOW - Free Report) closed at $498.01 in the latest trading session, marking a +1.82% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.2%.
Heading into today, shares of the maker of software that automates companies' technology operations had gained 7.51% over the past month, outpacing the Computer and Technology sector's gain of 5.84% and the S&P 500's gain of 1.06% in that time.
Investors will be hoping for strength from NOW as it approaches its next earnings release. On that day, NOW is projected to report earnings of $1.20 per share, which would represent a year-over-year decline of 2.44%. Our most recent consensus estimate is calling for quarterly revenue of $1.36 billion, up 26.82% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.50 per share and revenue of $5.72 billion. These totals would mark changes of +18.79% and +26.63%, respectively, from last year.
Investors might also notice 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.27% higher. NOW is currently a Zacks Rank #3 (Hold).
Digging into valuation, NOW currently has a Forward P/E ratio of 88.94. This represents a premium compared to its industry's average Forward P/E of 28.7.
Investors should also note that NOW has a PEG ratio of 3.2 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computers - IT Services industry currently had an average PEG ratio of 2.08 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 128, putting it in the top 50% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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ServiceNow (NOW) Outpaces Stock Market Gains: What You Should Know
ServiceNow (NOW - Free Report) closed at $498.01 in the latest trading session, marking a +1.82% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.2%.
Heading into today, shares of the maker of software that automates companies' technology operations had gained 7.51% over the past month, outpacing the Computer and Technology sector's gain of 5.84% and the S&P 500's gain of 1.06% in that time.
Investors will be hoping for strength from NOW as it approaches its next earnings release. On that day, NOW is projected to report earnings of $1.20 per share, which would represent a year-over-year decline of 2.44%. Our most recent consensus estimate is calling for quarterly revenue of $1.36 billion, up 26.82% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.50 per share and revenue of $5.72 billion. These totals would mark changes of +18.79% and +26.63%, respectively, from last year.
Investors might also notice 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.27% higher. NOW is currently a Zacks Rank #3 (Hold).
Digging into valuation, NOW currently has a Forward P/E ratio of 88.94. This represents a premium compared to its industry's average Forward P/E of 28.7.
Investors should also note that NOW has a PEG ratio of 3.2 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computers - IT Services industry currently had an average PEG ratio of 2.08 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 128, putting it in the top 50% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.