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ServiceNow (NOW) Gains But Lags Market: What You Should Know
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ServiceNow (NOW - Free Report) closed at $529.78 in the latest trading session, marking a +0.35% move from the prior day. This change lagged the S&P 500's 0.43% gain on the day. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, added 0.2%.
Heading into today, shares of the maker of software that automates companies' technology operations had lost 5.65% over the past month, lagging the Computer and Technology sector's gain of 3.3% and the S&P 500's gain of 3.69% in that time.
ServiceNow will be looking to display strength as it nears its next earnings release, which is expected to be April 27, 2022. On that day, ServiceNow is projected to report earnings of $1.69 per share, which would represent year-over-year growth of 11.18%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.69 billion, up 24.56% from the year-ago period.
NOW's full-year Zacks Consensus Estimates are calling for earnings of $7.35 per share and revenue of $7.39 billion. These results would represent year-over-year changes of +24.16% and +25.34%, respectively.
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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. The Zacks Consensus EPS estimate has moved 0.54% lower within the past month. ServiceNow currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that ServiceNow has a Forward P/E ratio of 71.8 right now. This valuation marks a premium compared to its industry's average Forward P/E of 24.85.
We can also see that NOW currently has a PEG ratio of 2.55. 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 1.16 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 187, which puts it in the bottom 27% 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.
To follow NOW in the coming trading sessions, be sure to utilize Zacks.com.
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ServiceNow (NOW) Gains But Lags Market: What You Should Know
ServiceNow (NOW - Free Report) closed at $529.78 in the latest trading session, marking a +0.35% move from the prior day. This change lagged the S&P 500's 0.43% gain on the day. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, added 0.2%.
Heading into today, shares of the maker of software that automates companies' technology operations had lost 5.65% over the past month, lagging the Computer and Technology sector's gain of 3.3% and the S&P 500's gain of 3.69% in that time.
ServiceNow will be looking to display strength as it nears its next earnings release, which is expected to be April 27, 2022. On that day, ServiceNow is projected to report earnings of $1.69 per share, which would represent year-over-year growth of 11.18%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.69 billion, up 24.56% from the year-ago period.
NOW's full-year Zacks Consensus Estimates are calling for earnings of $7.35 per share and revenue of $7.39 billion. These results would represent year-over-year changes of +24.16% and +25.34%, respectively.
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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. The Zacks Consensus EPS estimate has moved 0.54% lower within the past month. ServiceNow currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that ServiceNow has a Forward P/E ratio of 71.8 right now. This valuation marks a premium compared to its industry's average Forward P/E of 24.85.
We can also see that NOW currently has a PEG ratio of 2.55. 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 1.16 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 187, which puts it in the bottom 27% 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.
To follow NOW in the coming trading sessions, be sure to utilize Zacks.com.