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ServiceNow (NOW) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, ServiceNow (NOW - Free Report) closed at $561.44, marking a -0.74% move from the previous day. This move lagged the S&P 500's daily gain of 0.67%. Elsewhere, the Dow gained 0.93%, while the tech-heavy Nasdaq added 9.29%.
Heading into today, shares of the maker of software that automates companies' technology operations had gained 3.52% over the past month, outpacing the Computer and Technology sector's gain of 1.84% and the S&P 500's gain of 2.65% 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 July 26, 2023. On that day, ServiceNow is projected to report earnings of $2.05 per share, which would represent year-over-year growth of 26.54%. 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 should also note any recent changes to analyst estimates for ServiceNow. Recent revisions tend to reflect the latest near-term business trends. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ServiceNow currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, ServiceNow is holding a Forward P/E ratio of 59. This valuation marks a premium compared to its industry's average Forward P/E of 20.79.
It is also worth noting that NOW currently has a PEG ratio of 2.34. 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. Computers - IT Services stocks are, on average, holding a PEG ratio of 2.13 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 87, putting it in the top 35% 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) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, ServiceNow (NOW - Free Report) closed at $561.44, marking a -0.74% move from the previous day. This move lagged the S&P 500's daily gain of 0.67%. Elsewhere, the Dow gained 0.93%, while the tech-heavy Nasdaq added 9.29%.
Heading into today, shares of the maker of software that automates companies' technology operations had gained 3.52% over the past month, outpacing the Computer and Technology sector's gain of 1.84% and the S&P 500's gain of 2.65% 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 July 26, 2023. On that day, ServiceNow is projected to report earnings of $2.05 per share, which would represent year-over-year growth of 26.54%. 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 should also note any recent changes to analyst estimates for ServiceNow. Recent revisions tend to reflect the latest near-term business trends. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ServiceNow currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, ServiceNow is holding a Forward P/E ratio of 59. This valuation marks a premium compared to its industry's average Forward P/E of 20.79.
It is also worth noting that NOW currently has a PEG ratio of 2.34. 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. Computers - IT Services stocks are, on average, holding a PEG ratio of 2.13 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 87, putting it in the top 35% 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.