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ServiceNow (NOW) Gains As Market Dips: What You Should Know
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In the latest trading session, ServiceNow (NOW - Free Report) closed at $698.67, marking a +0.35% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.15%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, added 0.09%.
Shares of the maker of software that automates companies' technology operations witnessed a loss of 1.26% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.19% and the S&P 500's gain of 3.5%.
Analysts and investors alike will be keeping a close eye on the performance of ServiceNow in its upcoming earnings disclosure. The company's earnings report is set to go public on January 24, 2024. The company's upcoming EPS is projected at $2.77, signifying a 21.49% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.4 billion, up 23.55% from the year-ago period.
Investors might also notice recent changes to analyst estimates for ServiceNow. Such recent modifications usually signify the changing landscape 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.13% higher. Currently, ServiceNow is carrying a Zacks Rank of #3 (Hold).
Investors should also note ServiceNow's current valuation metrics, including its Forward P/E ratio of 54.41. For comparison, its industry has an average Forward P/E of 25.82, which means ServiceNow is trading at a premium to the group.
It's also important to note that NOW currently trades at a PEG ratio of 2. 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 2.41.
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 50, this industry ranks in the top 20% of all industries, numbering over 250.
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.
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
In the latest trading session, ServiceNow (NOW - Free Report) closed at $698.67, marking a +0.35% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.15%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, added 0.09%.
Shares of the maker of software that automates companies' technology operations witnessed a loss of 1.26% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.19% and the S&P 500's gain of 3.5%.
Analysts and investors alike will be keeping a close eye on the performance of ServiceNow in its upcoming earnings disclosure. The company's earnings report is set to go public on January 24, 2024. The company's upcoming EPS is projected at $2.77, signifying a 21.49% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.4 billion, up 23.55% from the year-ago period.
Investors might also notice recent changes to analyst estimates for ServiceNow. Such recent modifications usually signify the changing landscape 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.13% higher. Currently, ServiceNow is carrying a Zacks Rank of #3 (Hold).
Investors should also note ServiceNow's current valuation metrics, including its Forward P/E ratio of 54.41. For comparison, its industry has an average Forward P/E of 25.82, which means ServiceNow is trading at a premium to the group.
It's also important to note that NOW currently trades at a PEG ratio of 2. 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 2.41.
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 50, this industry ranks in the top 20% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.