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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 $369.13, moving -0.58% from the previous trading session. This change lagged the S&P 500's daily loss of 0.33%. Elsewhere, the Dow lost 0.1%, while the tech-heavy Nasdaq lost 0.24%.
Prior to today's trading, shares of the maker of software that automates companies' technology operations had lost 17.92% over the past month. This has lagged the Computer and Technology sector's loss of 14.71% and the S&P 500's loss of 11.67% 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 October 26, 2022. The company is expected to report EPS of $1.85, up 19.35% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.86 billion, up 22.69% 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 +24.01%, 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.13% higher. ServiceNow is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that ServiceNow has a Forward P/E ratio of 50.78 right now. Its industry sports an average Forward P/E of 20.65, so we one might conclude that ServiceNow is trading at a premium comparatively.
Investors should also note that NOW has a PEG ratio of 1.78 right now. 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 1.18 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 90, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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) Dips More Than Broader Markets: What You Should Know
ServiceNow (NOW - Free Report) closed the most recent trading day at $369.13, moving -0.58% from the previous trading session. This change lagged the S&P 500's daily loss of 0.33%. Elsewhere, the Dow lost 0.1%, while the tech-heavy Nasdaq lost 0.24%.
Prior to today's trading, shares of the maker of software that automates companies' technology operations had lost 17.92% over the past month. This has lagged the Computer and Technology sector's loss of 14.71% and the S&P 500's loss of 11.67% 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 October 26, 2022. The company is expected to report EPS of $1.85, up 19.35% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.86 billion, up 22.69% 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 +24.01%, 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.13% higher. ServiceNow is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that ServiceNow has a Forward P/E ratio of 50.78 right now. Its industry sports an average Forward P/E of 20.65, so we one might conclude that ServiceNow is trading at a premium comparatively.
Investors should also note that NOW has a PEG ratio of 1.78 right now. 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 1.18 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 90, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.