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The most recent trading session ended with ServiceNow (NOW - Free Report) standing at $707.71, reflecting a +0.57% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.59%. Elsewhere, the Dow saw an upswing of 0.68%, while the tech-heavy Nasdaq appreciated by 0.66%.
Prior to today's trading, shares of the maker of software that automates companies' technology operations had gained 5.52% over the past month. This has outpaced the Computer and Technology sector's gain of 4.11% and the S&P 500's gain of 5.16% in that time.
Analysts and investors alike will be keeping a close eye on the performance of ServiceNow in its upcoming earnings disclosure. In that report, analysts expect ServiceNow to post earnings of $2.78 per share. This would mark year-over-year growth of 21.93%. In the meantime, our current consensus estimate forecasts the revenue to be $2.4 billion, indicating a 23.47% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $10.44 per share and a revenue of $8.93 billion, demonstrating changes of +37.55% and +23.27%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for ServiceNow. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. ServiceNow currently has a Zacks Rank of #2 (Buy).
Digging into valuation, ServiceNow currently has a Forward P/E ratio of 67.42. This signifies a premium in comparison to the average Forward P/E of 27.45 for its industry.
It's also important to note that NOW currently trades at a PEG ratio of 2.39. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computers - IT Services was holding an average PEG ratio of 2.39 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 43, finds itself in the top 18% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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ServiceNow (NOW) Rises Yet Lags Behind Market: Some Facts Worth Knowing
The most recent trading session ended with ServiceNow (NOW - Free Report) standing at $707.71, reflecting a +0.57% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.59%. Elsewhere, the Dow saw an upswing of 0.68%, while the tech-heavy Nasdaq appreciated by 0.66%.
Prior to today's trading, shares of the maker of software that automates companies' technology operations had gained 5.52% over the past month. This has outpaced the Computer and Technology sector's gain of 4.11% and the S&P 500's gain of 5.16% in that time.
Analysts and investors alike will be keeping a close eye on the performance of ServiceNow in its upcoming earnings disclosure. In that report, analysts expect ServiceNow to post earnings of $2.78 per share. This would mark year-over-year growth of 21.93%. In the meantime, our current consensus estimate forecasts the revenue to be $2.4 billion, indicating a 23.47% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $10.44 per share and a revenue of $8.93 billion, demonstrating changes of +37.55% and +23.27%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for ServiceNow. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. ServiceNow currently has a Zacks Rank of #2 (Buy).
Digging into valuation, ServiceNow currently has a Forward P/E ratio of 67.42. This signifies a premium in comparison to the average Forward P/E of 27.45 for its industry.
It's also important to note that NOW currently trades at a PEG ratio of 2.39. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computers - IT Services was holding an average PEG ratio of 2.39 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 43, finds itself in the top 18% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.