Back to top

Image: Bigstock

ServiceNow (NOW) Stock Moves -0.27%: What You Should Know

Read MoreHide Full Article

In the latest trading session, ServiceNow (NOW - Free Report) closed at $518.20, marking a -0.27% move from the previous day. This change was narrower than the S&P 500's daily loss of 0.72%. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq gained 0.33%.

Prior to today's trading, shares of the maker of software that automates companies' technology operations had lost 9.35% over the past month. This has was narrower than the Computer and Technology sector's loss of 10.02% and lagged the S&P 500's loss of 6.24% in that time.

Investors will be hoping for strength from ServiceNow as it approaches its next earnings release. On that day, ServiceNow is projected to report earnings of $1.69 per share, which would represent year-over-year growth of 11.18%. Our most recent consensus estimate is calling for quarterly revenue of $1.7 billion, up 24.68% from the year-ago period.

NOW's full-year Zacks Consensus Estimates are calling for earnings of $7.36 per share and revenue of $7.4 billion. These results would represent year-over-year changes of +24.32% and +25.5%, respectively.

Investors should also note any recent changes to analyst estimates for ServiceNow. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ServiceNow is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, ServiceNow is holding a Forward P/E ratio of 70.59. For comparison, its industry has an average Forward P/E of 17.92, which means ServiceNow is trading at a premium to the group.

Meanwhile, NOW's PEG ratio is currently 2.51. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NOW's industry had an average PEG ratio of 0.73 as of yesterday's close.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 209, which puts it in the bottom 18% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


ServiceNow, Inc. (NOW) - free report >>

Published in