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ServiceNow (NOW) Dips More Than Broader Markets: What You Should Know
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ServiceNow (NOW - Free Report) closed at $422.77 in the latest trading session, marking a -1.21% move from the prior day. This change lagged the S&P 500's 0.45% loss on the day. Meanwhile, the Dow lost 0.67%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Prior to today's trading, shares of the maker of software that automates companies' technology operations had lost 3.78% over the past month. This has lagged the Computer and Technology sector's loss of 2.03% and the S&P 500's loss of 1.89% in that time.
Wall Street will be looking for positivity from ServiceNow as it approaches its next earnings report date. This is expected to be July 27, 2022. In that report, analysts expect ServiceNow to post earnings of $1.54 per share. This would mark year-over-year growth of 8.45%. Our most recent consensus estimate is calling for quarterly revenue of $1.77 billion, up 25.45% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.31 per share and revenue of $7.42 billion, which would represent changes of +23.48% and +25.94%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for ServiceNow. These revisions help to show the ever-changing nature of near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, ServiceNow is currently trading at a Forward P/E ratio of 58.51. This represents a premium compared to its industry's average Forward P/E of 15.72.
Also, we should mention that NOW has a PEG ratio of 2.04. 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. Computers - IT Services stocks are, on average, holding a PEG ratio of 0.89 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 140, which puts it in the bottom 45% 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 at $422.77 in the latest trading session, marking a -1.21% move from the prior day. This change lagged the S&P 500's 0.45% loss on the day. Meanwhile, the Dow lost 0.67%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Prior to today's trading, shares of the maker of software that automates companies' technology operations had lost 3.78% over the past month. This has lagged the Computer and Technology sector's loss of 2.03% and the S&P 500's loss of 1.89% in that time.
Wall Street will be looking for positivity from ServiceNow as it approaches its next earnings report date. This is expected to be July 27, 2022. In that report, analysts expect ServiceNow to post earnings of $1.54 per share. This would mark year-over-year growth of 8.45%. Our most recent consensus estimate is calling for quarterly revenue of $1.77 billion, up 25.45% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.31 per share and revenue of $7.42 billion, which would represent changes of +23.48% and +25.94%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for ServiceNow. These revisions help to show the ever-changing nature of near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, ServiceNow is currently trading at a Forward P/E ratio of 58.51. This represents a premium compared to its industry's average Forward P/E of 15.72.
Also, we should mention that NOW has a PEG ratio of 2.04. 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. Computers - IT Services stocks are, on average, holding a PEG ratio of 0.89 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 140, which puts it in the bottom 45% 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.