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ServiceNow (NOW) Outperforms Broader Market: What You Need to Know
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The most recent trading session ended with ServiceNow (NOW - Free Report) standing at $703.72, reflecting a +0.78% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily gain of 0.45%.
The investment community will be paying close attention to the earnings performance of ServiceNow in its upcoming release. The company is predicted to post an EPS of $2.78, indicating a 21.93% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.4 billion, up 23.47% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.44 per share and a revenue of $8.93 billion, representing changes of +37.55% and +23.27%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for ServiceNow. These revisions help to show the ever-changing nature of 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 suggests that these changes in estimates have a direct relationship with upcoming 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.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ServiceNow is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, ServiceNow currently has a Forward P/E ratio of 66.89. This indicates a premium in contrast to its industry's Forward P/E of 26.82.
We can also see that NOW currently has a PEG ratio of 2.37. 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. NOW's industry had an average PEG ratio of 2.31 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% 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
The most recent trading session ended with ServiceNow (NOW - Free Report) standing at $703.72, reflecting a +0.78% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily gain of 0.45%.
The investment community will be paying close attention to the earnings performance of ServiceNow in its upcoming release. The company is predicted to post an EPS of $2.78, indicating a 21.93% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.4 billion, up 23.47% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.44 per share and a revenue of $8.93 billion, representing changes of +37.55% and +23.27%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for ServiceNow. These revisions help to show the ever-changing nature of 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 suggests that these changes in estimates have a direct relationship with upcoming 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.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ServiceNow is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, ServiceNow currently has a Forward P/E ratio of 66.89. This indicates a premium in contrast to its industry's Forward P/E of 26.82.
We can also see that NOW currently has a PEG ratio of 2.37. 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. NOW's industry had an average PEG ratio of 2.31 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% 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.