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ServiceNow (NOW) Gains As Market Dips: What You Should Know
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ServiceNow (NOW - Free Report) closed the most recent trading day at $565.76, moving +0.51% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.2%. At the same time, the Dow lost 0.38%, and the tech-heavy Nasdaq lost 9.78%.
Prior to today's trading, shares of the maker of software that automates companies' technology operations had gained 1.27% over the past month. This has lagged the Computer and Technology sector's gain of 4.63% and the S&P 500's gain of 4.16% in that time.
Investors will be hoping for strength from ServiceNow as it approaches its next earnings release. The company is expected to report EPS of $2.05, up 26.54% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.13 billion, up 21.52% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.59 per share and revenue of $8.81 billion, which would represent changes of +26.35% and +21.63%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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 remained stagnant within the past month. ServiceNow currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, ServiceNow is holding a Forward P/E ratio of 58.72. This represents a premium compared to its industry's average Forward P/E of 20.68.
Also, we should mention that NOW has a PEG ratio of 2.33. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computers - IT Services was holding an average PEG ratio of 2.14 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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ServiceNow (NOW) Gains As Market Dips: What You Should Know
ServiceNow (NOW - Free Report) closed the most recent trading day at $565.76, moving +0.51% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.2%. At the same time, the Dow lost 0.38%, and the tech-heavy Nasdaq lost 9.78%.
Prior to today's trading, shares of the maker of software that automates companies' technology operations had gained 1.27% over the past month. This has lagged the Computer and Technology sector's gain of 4.63% and the S&P 500's gain of 4.16% in that time.
Investors will be hoping for strength from ServiceNow as it approaches its next earnings release. The company is expected to report EPS of $2.05, up 26.54% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.13 billion, up 21.52% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.59 per share and revenue of $8.81 billion, which would represent changes of +26.35% and +21.63%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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 remained stagnant within the past month. ServiceNow currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, ServiceNow is holding a Forward P/E ratio of 58.72. This represents a premium compared to its industry's average Forward P/E of 20.68.
Also, we should mention that NOW has a PEG ratio of 2.33. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computers - IT Services was holding an average PEG ratio of 2.14 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.