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ServiceNow (NOW) Dips More Than Broader Markets: What You Should Know
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ServiceNow (NOW - Free Report) closed the most recent trading day at $569.80, moving -1.74% from the previous trading session. This change lagged the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.58%, and the tech-heavy Nasdaq lost 0.18%.
Prior to today's trading, shares of the maker of software that automates companies' technology operations had gained 4.29% over the past month. This has outpaced the Computer and Technology sector's gain of 1.92% and the S&P 500's gain of 2.67% in that time.
Investors will be hoping for strength from ServiceNow as it approaches its next earnings release. In that report, analysts expect ServiceNow to post earnings of $1.69 per share. This would mark year-over-year growth of 11.18%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.7 billion, up 24.68% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.36 per share and revenue of $7.4 billion, which would represent changes of +24.32% and +25.5%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for ServiceNow. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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. ServiceNow is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, ServiceNow is holding a Forward P/E ratio of 78.77. Its industry sports an average Forward P/E of 23.48, so we one might conclude that ServiceNow is trading at a premium comparatively.
Investors should also note that NOW has a PEG ratio of 2.8 right now. 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 1.08 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 199, putting it in the bottom 22% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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ServiceNow (NOW) Dips More Than Broader Markets: What You Should Know
ServiceNow (NOW - Free Report) closed the most recent trading day at $569.80, moving -1.74% from the previous trading session. This change lagged the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.58%, and the tech-heavy Nasdaq lost 0.18%.
Prior to today's trading, shares of the maker of software that automates companies' technology operations had gained 4.29% over the past month. This has outpaced the Computer and Technology sector's gain of 1.92% and the S&P 500's gain of 2.67% in that time.
Investors will be hoping for strength from ServiceNow as it approaches its next earnings release. In that report, analysts expect ServiceNow to post earnings of $1.69 per share. This would mark year-over-year growth of 11.18%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.7 billion, up 24.68% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.36 per share and revenue of $7.4 billion, which would represent changes of +24.32% and +25.5%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for ServiceNow. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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. ServiceNow is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, ServiceNow is holding a Forward P/E ratio of 78.77. Its industry sports an average Forward P/E of 23.48, so we one might conclude that ServiceNow is trading at a premium comparatively.
Investors should also note that NOW has a PEG ratio of 2.8 right now. 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 1.08 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 199, putting it in the bottom 22% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.