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 Moves -0.38%: What You Should Know
Read MoreHide Full Article
In the latest trading session, ServiceNow (NOW - Free Report) closed at $355.44, marking a -0.38% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.67%. Elsewhere, the Dow lost 0.33%, while the tech-heavy Nasdaq lost 0.22%.
Prior to today's trading, shares of the maker of software that automates companies' technology operations had lost 13.23% over the past month. This has lagged the Computer and Technology sector's loss of 5.64% and the S&P 500's loss of 3.76% in that time.
Investors will be hoping for strength from ServiceNow as it approaches its next earnings release, which 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. Meanwhile, our latest consensus estimate is calling for revenue of $1.85 billion, up 22.66% 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 $7.31 billion. These totals would mark changes of +23.48% and +24.01%, respectively, from last 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.16% lower. ServiceNow is currently a Zacks Rank #3 (Hold).
Looking at its valuation, ServiceNow is holding a Forward P/E ratio of 48.82. Its industry sports an average Forward P/E of 21.38, so we one might conclude that ServiceNow is trading at a premium comparatively.
We can also see that NOW currently has a PEG ratio of 1.71. 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 1.13 based on yesterday's closing prices.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ServiceNow (NOW) Stock Moves -0.38%: What You Should Know
In the latest trading session, ServiceNow (NOW - Free Report) closed at $355.44, marking a -0.38% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.67%. Elsewhere, the Dow lost 0.33%, while the tech-heavy Nasdaq lost 0.22%.
Prior to today's trading, shares of the maker of software that automates companies' technology operations had lost 13.23% over the past month. This has lagged the Computer and Technology sector's loss of 5.64% and the S&P 500's loss of 3.76% in that time.
Investors will be hoping for strength from ServiceNow as it approaches its next earnings release, which 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. Meanwhile, our latest consensus estimate is calling for revenue of $1.85 billion, up 22.66% 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 $7.31 billion. These totals would mark changes of +23.48% and +24.01%, respectively, from last 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.16% lower. ServiceNow is currently a Zacks Rank #3 (Hold).
Looking at its valuation, ServiceNow is holding a Forward P/E ratio of 48.82. Its industry sports an average Forward P/E of 21.38, so we one might conclude that ServiceNow is trading at a premium comparatively.
We can also see that NOW currently has a PEG ratio of 1.71. 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 1.13 based on yesterday's closing prices.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.