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ServiceNow (NOW) Gains But Lags Market: What You Should Know
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ServiceNow (NOW - Free Report) closed at $366.53 in the latest trading session, marking a +0.06% move from the prior day. The stock lagged the S&P 500's daily gain of 2.28%. At the same time, the Dow added 2.13%, and the tech-heavy Nasdaq gained 5.02%.
Coming into today, shares of the maker of software that automates companies' technology operations had lost 7.55% in the past month. In that same time, the Computer and Technology sector lost 8.41%, while the S&P 500 lost 4.61%.
Investors will be hoping for strength from ServiceNow as it approaches its next earnings release, which is expected to be January 25, 2023. In that report, analysts expect ServiceNow to post earnings of $2 per share. This would mark year-over-year growth of 36.99%. Meanwhile, our latest consensus estimate is calling for revenue of $1.93 billion, up 19.82% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for ServiceNow. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.4% lower within the past month. ServiceNow currently has a Zacks Rank of #4 (Sell).
Investors should also note ServiceNow's current valuation metrics, including its Forward P/E ratio of 40.76. Its industry sports an average Forward P/E of 19.36, so we one might conclude that ServiceNow is trading at a premium comparatively.
Investors should also note that NOW has a PEG ratio of 1.45 right now. 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. The Computers - IT Services was holding an average PEG ratio of 1.09 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% 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) Gains But Lags Market: What You Should Know
ServiceNow (NOW - Free Report) closed at $366.53 in the latest trading session, marking a +0.06% move from the prior day. The stock lagged the S&P 500's daily gain of 2.28%. At the same time, the Dow added 2.13%, and the tech-heavy Nasdaq gained 5.02%.
Coming into today, shares of the maker of software that automates companies' technology operations had lost 7.55% in the past month. In that same time, the Computer and Technology sector lost 8.41%, while the S&P 500 lost 4.61%.
Investors will be hoping for strength from ServiceNow as it approaches its next earnings release, which is expected to be January 25, 2023. In that report, analysts expect ServiceNow to post earnings of $2 per share. This would mark year-over-year growth of 36.99%. Meanwhile, our latest consensus estimate is calling for revenue of $1.93 billion, up 19.82% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for ServiceNow. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.4% lower within the past month. ServiceNow currently has a Zacks Rank of #4 (Sell).
Investors should also note ServiceNow's current valuation metrics, including its Forward P/E ratio of 40.76. Its industry sports an average Forward P/E of 19.36, so we one might conclude that ServiceNow is trading at a premium comparatively.
Investors should also note that NOW has a PEG ratio of 1.45 right now. 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. The Computers - IT Services was holding an average PEG ratio of 1.09 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% 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.