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ServiceNow (NOW) Gains As Market Dips: What You Should Know
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ServiceNow (NOW - Free Report) closed at $477.79 in the latest trading session, marking a +0.92% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.07%. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 0.02%.
Heading into today, shares of the maker of software that automates companies' technology operations had gained 1.28% over the past month, outpacing the Computer and Technology sector's loss of 7.26% and the S&P 500's loss of 7.99% in that time.
Wall Street will be looking for positivity from ServiceNow as it approaches its next earnings report date. In that report, analysts expect ServiceNow to post earnings of $1.54 per share. This would mark year-over-year growth of 8.45%. Meanwhile, our latest consensus estimate is calling for revenue of $1.77 billion, up 25.45% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.31 per share and revenue of $7.42 billion. These totals would mark changes of +23.48% and +25.94%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for ServiceNow. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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.
Investors should also note ServiceNow's current valuation metrics, including its Forward P/E ratio of 64.73. Its industry sports an average Forward P/E of 17.68, so we one might conclude that ServiceNow is trading at a premium comparatively.
Also, we should mention that NOW has a PEG ratio of 2.26. 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 0.86 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 104, putting it in the top 42% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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ServiceNow (NOW) Gains As Market Dips: What You Should Know
ServiceNow (NOW - Free Report) closed at $477.79 in the latest trading session, marking a +0.92% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.07%. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 0.02%.
Heading into today, shares of the maker of software that automates companies' technology operations had gained 1.28% over the past month, outpacing the Computer and Technology sector's loss of 7.26% and the S&P 500's loss of 7.99% in that time.
Wall Street will be looking for positivity from ServiceNow as it approaches its next earnings report date. In that report, analysts expect ServiceNow to post earnings of $1.54 per share. This would mark year-over-year growth of 8.45%. Meanwhile, our latest consensus estimate is calling for revenue of $1.77 billion, up 25.45% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.31 per share and revenue of $7.42 billion. These totals would mark changes of +23.48% and +25.94%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for ServiceNow. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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.
Investors should also note ServiceNow's current valuation metrics, including its Forward P/E ratio of 64.73. Its industry sports an average Forward P/E of 17.68, so we one might conclude that ServiceNow is trading at a premium comparatively.
Also, we should mention that NOW has a PEG ratio of 2.26. 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 0.86 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 104, putting it in the top 42% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.