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Strength Seen in ServiceNow (NOW): Can Its 4.8% Jump Turn into More Strength?
ServiceNow (NOW - Free Report) shares soared 4.8% in the last trading session to close at $704.11. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5.8% loss over the past four weeks.
ServiceNow has been making waves in the stock market recently, with its stock price showing strong movements. The company’s long and steady track record of 20%-plus revenue growth has caught the attention of investors, leading to its trending status.
This maker of software that automates companies' technology operations is expected to post quarterly earnings of $2.85 per share in its upcoming report, which represents a year-over-year change of +20.3%. Revenues are expected to be $2.61 billion, up 21.2% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For ServiceNow, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on NOW going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
ServiceNow belongs to the Zacks Computers - IT Services industry. Another stock from the same industry, ASGN Inc (ASGN - Free Report) , closed the last trading session 0.8% higher at $95.21. Over the past month, ASGN has returned -4.4%.
For ASGN Inc, the consensus EPS estimate for the upcoming report has changed +0.3% over the past month to $1.33. This represents a change of -16.4% from what the company reported a year ago. ASGN Inc currently has a Zacks Rank of #5 (Strong Sell).