We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ServiceNow (NOW) Stock Sinks As Market Gains: What You Should Know
Read MoreHide Full Article
In the latest trading session, ServiceNow (NOW - Free Report) closed at $430.56, marking a -0.93% move from the previous day. This move lagged the S&P 500's daily gain of 0.3%. Meanwhile, the Dow gained 0.46%, and the Nasdaq, a tech-heavy index, lost 0.09%.
Coming into today, shares of the maker of software that automates companies' technology operations had lost 7.81% in the past month. In that same time, the Computer and Technology sector lost 5.16%, while the S&P 500 lost 4.13%.
Investors will be hoping for strength from ServiceNow as it approaches its next earnings release. The company is expected to report EPS of $1.83, up 18.06% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.85 billion, up 22.59% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.31 per share and revenue of $7.31 billion, which would represent changes of +23.48% and +23.97%, respectively, from the prior year.
Any recent changes to analyst estimates for ServiceNow should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.
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 has moved 0.32% lower within the past month. ServiceNow is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, ServiceNow currently has a Forward P/E ratio of 59.45. For comparison, its industry has an average Forward P/E of 21.25, which means ServiceNow is trading at a premium to the group.
It is also worth noting that NOW currently has a PEG ratio of 2.08. 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 1.34 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 149, putting it in the bottom 41% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ServiceNow (NOW) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, ServiceNow (NOW - Free Report) closed at $430.56, marking a -0.93% move from the previous day. This move lagged the S&P 500's daily gain of 0.3%. Meanwhile, the Dow gained 0.46%, and the Nasdaq, a tech-heavy index, lost 0.09%.
Coming into today, shares of the maker of software that automates companies' technology operations had lost 7.81% in the past month. In that same time, the Computer and Technology sector lost 5.16%, while the S&P 500 lost 4.13%.
Investors will be hoping for strength from ServiceNow as it approaches its next earnings release. The company is expected to report EPS of $1.83, up 18.06% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.85 billion, up 22.59% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.31 per share and revenue of $7.31 billion, which would represent changes of +23.48% and +23.97%, respectively, from the prior year.
Any recent changes to analyst estimates for ServiceNow should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.
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 has moved 0.32% lower within the past month. ServiceNow is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, ServiceNow currently has a Forward P/E ratio of 59.45. For comparison, its industry has an average Forward P/E of 21.25, which means ServiceNow is trading at a premium to the group.
It is also worth noting that NOW currently has a PEG ratio of 2.08. 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 1.34 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 149, putting it in the bottom 41% 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.