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ServiceNow (NOW) Outperforms Broader Market: What You Need to Know
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ServiceNow (NOW - Free Report) closed at $716.48 in the latest trading session, marking a +1.61% move from the prior day. This move outpaced the S&P 500's daily gain of 0.46%. Elsewhere, the Dow saw an upswing of 0.48%, while the tech-heavy Nasdaq appreciated by 0.7%.
The maker of software that automates companies' technology operations's shares have seen an increase of 10.45% over the last month, surpassing the Computer and Technology sector's gain of 4.16% and the S&P 500's gain of 4.85%.
The investment community will be paying close attention to the earnings performance of ServiceNow in its upcoming release. In that report, analysts expect ServiceNow to post earnings of $2.78 per share. This would mark year-over-year growth of 21.93%. Alongside, our most recent consensus estimate is anticipating revenue of $2.4 billion, indicating a 23.47% upward movement from the same quarter last year.
NOW's full-year Zacks Consensus Estimates are calling for earnings of $10.44 per share and revenue of $8.93 billion. These results would represent year-over-year changes of +37.55% and +23.27%, respectively.
Any recent changes to analyst estimates for ServiceNow should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, ServiceNow possesses a Zacks Rank of #2 (Buy).
In terms of valuation, ServiceNow is currently trading at a Forward P/E ratio of 67.55. For comparison, its industry has an average Forward P/E of 25.09, which means ServiceNow is trading at a premium to the group.
Also, we should mention that NOW has a PEG ratio of 2.39. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Computers - IT Services industry was having an average PEG ratio of 2.39.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 22% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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ServiceNow (NOW) Outperforms Broader Market: What You Need to Know
ServiceNow (NOW - Free Report) closed at $716.48 in the latest trading session, marking a +1.61% move from the prior day. This move outpaced the S&P 500's daily gain of 0.46%. Elsewhere, the Dow saw an upswing of 0.48%, while the tech-heavy Nasdaq appreciated by 0.7%.
The maker of software that automates companies' technology operations's shares have seen an increase of 10.45% over the last month, surpassing the Computer and Technology sector's gain of 4.16% and the S&P 500's gain of 4.85%.
The investment community will be paying close attention to the earnings performance of ServiceNow in its upcoming release. In that report, analysts expect ServiceNow to post earnings of $2.78 per share. This would mark year-over-year growth of 21.93%. Alongside, our most recent consensus estimate is anticipating revenue of $2.4 billion, indicating a 23.47% upward movement from the same quarter last year.
NOW's full-year Zacks Consensus Estimates are calling for earnings of $10.44 per share and revenue of $8.93 billion. These results would represent year-over-year changes of +37.55% and +23.27%, respectively.
Any recent changes to analyst estimates for ServiceNow should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, ServiceNow possesses a Zacks Rank of #2 (Buy).
In terms of valuation, ServiceNow is currently trading at a Forward P/E ratio of 67.55. For comparison, its industry has an average Forward P/E of 25.09, which means ServiceNow is trading at a premium to the group.
Also, we should mention that NOW has a PEG ratio of 2.39. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Computers - IT Services industry was having an average PEG ratio of 2.39.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 22% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.